Advice - Moving/Buying/Letting???

darrencurry2001

Hi Everyone

I currently have a mortgage which I have had for arond 5 years, this was originally a fixed rate which has now changes to variable tracker so paying 1.25%. Owe around £88k on a £100k original LTV. This is a portable mortgage.

The thing is my wife has spotted a home which we would like to move to, its on the market for £100k.

Basically I am wondering what the best options would be for us if we wanted to move.

Presumably the obvious one would be a straight sell of our own home for £100k and buy new home for £100k and port the mortgage over everything as is.

However what if we cannot sell our home
Is there an option that we can port our current mortgate to the new home and get a buy to let on the old house.

Any advice would be appreciated.

Thanks
Darren

Thrugelmir

darrencurry2001 wrote: »

Owe around £88k on a £100k original LTV.

Too high a LTV for a BTL mortgage.

nollag2006

With the housing market picking up, it would be a shame to sell off your existing property.

First stop is to approach your existing lender to ask for Consent to Let. You may not need to go down the BTL route, at all.

If they wont give you CTL, then you may need to consider using any extra cash you can use to pay down some of the existing mortgage to get a better LTV. Most providers want at least a 25% deposit:
http://moneyfacts.co.uk/compare/mortgages/buy-to-let/

Might be worth talking to a broker. Google someone in your local area.

kingstreet

You can't transfer a mortgage from one property to another. You might be able to move the rate from an old mortgage to a new one, but you have to satisfy the lender's criteria, affordability and loan to value requirements.

If the first property isn't sold, where's the deposit for the new one coming from?

darrencurry2001

Thanks for the replies

nollag2006 - yeah i would prefer to keep both of them to be honest as you say, but to get down to 75% would mean using the cash which would be used on the other property to get it down to 88k (i.e. remaining value of current mortgage)

Kingstreet - current mortgage is a portable and have checked with the lender we can move my current balance on its current rate, however if we want to increase the value the difference would be on a new rate.

again am i right in that the most straight forward way would be too sell current house for 100k and purchase new house for 100k (both house are valued and selling at about the same price although would be nice to get new home cheaper ) thus giving 12k deposit and 88k transfer of current mortgage.

Question is what if we cannot sell current house are there alternatives anyone knows of?