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Advice- how can I use my equity to get a house
aKtechno
Posts: 14 Forumite
Would really appreciate some expert advice please?
I own a house with a current value of £150K. I have a mortgage with 64K left to repay. Repayment mortgage (£570 a month).
The house is under my name, although the household as a whole pays the mortgage. I earn £35K a year.
I want a second house/appartment for me to live in for the working week or to rent out. (have not worked out which- depend on which is best financial decision). I can afford to pay £600 a month or get £500 rent, looking to buy something for £130K.
I do not have any deposit to put down at the moment. Is there any way to use my exisiting house to help get a second mortgage??? :mad:
I own a house with a current value of £150K. I have a mortgage with 64K left to repay. Repayment mortgage (£570 a month).
The house is under my name, although the household as a whole pays the mortgage. I earn £35K a year.
I want a second house/appartment for me to live in for the working week or to rent out. (have not worked out which- depend on which is best financial decision). I can afford to pay £600 a month or get £500 rent, looking to buy something for £130K.
I do not have any deposit to put down at the moment. Is there any way to use my exisiting house to help get a second mortgage??? :mad:
0
Comments
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Here's how I would do it if you really have to have a second house. Personally, I would not buy a second house unless it's necessary, but it is only my personal opinion.
Remortgage your house and get the miminum 15% for a Buy-To-Let mortgage.
So now, you have raised £20k for the new house.
Now, you will have 2 mortgages to finance, assuming 5.5% interest:
Existing house : £84k - repayment mortgage over 25 years = £525
New house: £100k - Interest only mortgage to finance over 25 years = £475
So, total mortgage payments per month = £1000
Minus £500 for the rental income from new house,
GROSS TOTAL OUTGOING PER MONTH = £500.
You'd have to add tax, repairs and maintenance onto that as well.0 -
Would really appreciate some expert advice please?
I own a house with a current value of £150K. I have a mortgage with 64K left to repay. Repayment mortgage (£570 a month).
The house is under my name, although the household as a whole pays the mortgage. I earn £35K a year.
I want a second house/appartment for me to live in for the working week or to rent out. (have not worked out which- depend on which is best financial decision). I can afford to pay £600 a month or get £500 rent, looking to buy something for £130K.
I do not have any deposit to put down at the moment. Is there any way to use my exisiting house to help get a second mortgage??? :mad:
Are there any other people that earn in the household?
You probably realise that your income is insufficient to raise a mortgage for another £130,000.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Thanks, interesting thoughts. Yes othe earner, one parent earning £20-25K.0
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What mortgage rate are you paying on the existing mortgage?Happy chappy0
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