Remortgage and Buy to let. Advise required.

Peanut1978

Hi, first post on any forum ever so take it easy on me.

Mortgage is up for renewal. £145,000.
House value £230,000.
Income £42,000.
minimal savings.
£0 Debts.
Normal household outgoings.
Potential £70-90k buy to let.
Please could anyone give me some advise, id like to remortgage my house and potentially purchase a buy to let. Wondering what is the best way to go about borrowing for the second property?
1, Does this proposal look posible.
2, Am i best adding the cost of buy to let onto existing remortgage.
3, or getting a second mortgage.

Thanks any help would be appreciated. Probable forgotten to give lots of info. :beer:

Dave_Ham

Hi Peanut and welcome..

New members have to share a special skill that you have with the group. Yesterday longarms confirmed he could scratch his knees whilst upstanding without bending his back - impressive - can you beat that??

Onto the sensible side of your request:

You need to be aware of a few variables but yes this look achievable:

• Sensibly you would only want to re-finance your own property upto 75% loan to value to keep being the offered the good rates - you cannot take all of your equity out
• Buy to Lets will usually lend upto 80-85% LTV so you do not have to sink all of your money in, although some lenders will not like a first time landlord.
• The key figure for buy to let is 125%. Does the rent and it is validated come to 125% of the mortgage payments or a pre-defined rate by the said bank
• Most buy to let mortgages are done interest only to make the above point realistic
• Is your income PAYE - hence great and some lender want you to be at least 21 or 25, although guessing that you are 33 or 34..

Any other questions please ask away - some very knowledgeable and helpful people here...

Peanut1978

Thanks Dave some useful info there. Special skill: Diagnosing boiler/heating breakdowns, i can also touch my nose with my tongue. Im married with kids so that special skill is reserved for my wife sorry. lol.

Dave_Ham

Impressive - I think...

Do post if you have any more specific questions or if a situation comes up and you are unsure.

All the best..