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Re mortgage to buy Buy to Let??
fluffpot
Posts: 1,264 Forumite
I've not ventured onto this board before so be gentle!
This idea might be pie in the sky, but I'm of the view that it's always good to check out your ideas, some of my best ones seemed crazy at first!
Anyway - here's the background
We (me and husband age 45/50, no kids) own a propery in London. Very conservatively I would estimate it's value to be around £500K. We have about £30K left on mortgage. At the moment we think we will live in London for say another 10 years, but ultimately would like to relocate to the south coast (the cheap end!)
My question is: would it be possible to re mortgage to buy a property in our chosen location and let this out with a view to moving there in say 10 years and then letting out our London home? Current rental income for the London property is around £2500 per month.
Is this even a good idea?
Having had a very quick look, covering the mortgage on a BTL in the area we like would be pretty marginal. Looking at a purchase price would be around £200-£240K
How much cash deposit is required in this situation?
We are both self employed - would this make a difference?
Ideally I would like the shortest mortgage term possible but given our ages would this be imposed anyway?
How about interest only mortgage to start with and then swap to repayment when we move - using the much higher rental income from the London home to pay off the mortgage more quickly?
Sorry for all the Q's! Any feedback much appreciated. Just to know if it's a no go or worth looking into further
It goes without saying of course that I we decided to investigate further we'd get some financial advice!
Many thanks
This idea might be pie in the sky, but I'm of the view that it's always good to check out your ideas, some of my best ones seemed crazy at first!
Anyway - here's the background
We (me and husband age 45/50, no kids) own a propery in London. Very conservatively I would estimate it's value to be around £500K. We have about £30K left on mortgage. At the moment we think we will live in London for say another 10 years, but ultimately would like to relocate to the south coast (the cheap end!)
My question is: would it be possible to re mortgage to buy a property in our chosen location and let this out with a view to moving there in say 10 years and then letting out our London home? Current rental income for the London property is around £2500 per month.
Is this even a good idea?
Having had a very quick look, covering the mortgage on a BTL in the area we like would be pretty marginal. Looking at a purchase price would be around £200-£240K
How much cash deposit is required in this situation?
We are both self employed - would this make a difference?
Ideally I would like the shortest mortgage term possible but given our ages would this be imposed anyway?
How about interest only mortgage to start with and then swap to repayment when we move - using the much higher rental income from the London home to pay off the mortgage more quickly?
Sorry for all the Q's! Any feedback much appreciated. Just to know if it's a no go or worth looking into further
It goes without saying of course that I we decided to investigate further we'd get some financial advice!
Many thanks
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