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Mortgage / rental property - need advice
Fifitrix17
Posts: 9 Forumite
We currently own a 2 bedroom flat in Barons Court on an interest only mortgage but would like to rent it out and buy a house outside London.
We have approx £130k equity on our flat and my questions are:
1. Is the equity on our flat taken into consideration as
?collateral when we go for a second mortgage?
2. Would we need to change our current mortgage to a "buy to let" mortgage?
3. Finally, would we still need a cash deposit to buy the house?
Any help / advice you can give is much appreciated. Thank you
We have approx £130k equity on our flat and my questions are:
1. Is the equity on our flat taken into consideration as
?collateral when we go for a second mortgage?
2. Would we need to change our current mortgage to a "buy to let" mortgage?
3. Finally, would we still need a cash deposit to buy the house?
Any help / advice you can give is much appreciated. Thank you
0
Comments
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Fifitrix17 wrote: »We currently own a 2 bedroom flat in Barons Court on an interest only mortgage but would like to rent it out and buy a house outside London.
We have approx £130k equity on our flat and my questions are:
1. Is the equity on our flat taken into consideration as
?collateral when we go for a second mortgage?
2. Would we need to change our current mortgage to a "buy to let" mortgage?
3. Finally, would we still need a cash deposit to buy the house?
Any help / advice you can give is much appreciated. Thank you
1. No
2. You would need a Buy to Let or get Consent to Let from current lender
3. Yes
May be possible to raise some cash on the flat if doing a Buy to Let remortgage in order to fund a deposit for the purchaseI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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