Trying to get my head around the finances

RACH83_2

I was wondering if someone could help me out with trying to understand what I might be able to do.

I have a property that I own with my father. It has about 11 years on the mortgage left and the outstanding balance is about £70,000. I estimated its value to be around £160,000.

I am married and my husband and I would like to buy a bigger house. I cannot sell the other house as my father does not wish to (he would like to hang onto it as an investment).

We earn around £50,000 between the pair of us and I have some debt which I am paying off and intend to pay off before buying another house. Other half has around £10,000 in savings.

House prices for what we are looking at are around £240,000. I have been told that we could use the equity in the house we live in now in lieu of deposit? (I own 90%).

Essentially what I am trying to work out is what we can borrow, what ates are likely or do we need to try and save lots more!

Gary123456790

Hi,

What is the value and outstanding mortgage of the house you live in.

Is the property you own with your father rented out? Does the rent cover the complete mortgage payment?

Are your credit reports OK with no missed payments or defaults?

Gary.

RACH83_2

What is the value and outstanding mortgage of the house you live in. I estimate the value to be £160,000 and outstanding mortage is around £70,000 with 11 years to go.

Is the property you own with your father rented out? Does the rent cover the complete mortgage payment? I currently live in it but the intention is to rent it out. The rent would cover the mortgage payment with a bit left over.

Are your credit reports OK with no missed payments or defaults? They are for hubby although I did have a late payment on the credit card about 4 years ago.

GMS

You cannot use the equity in the property as a deposit for a new purchase. You would need to release the equity with a remortgage or further advance.

As you are planning to rent the place out you would need consent to let or a new Buy to Let mortgage.

May be easier to get a new mortgage and release the equity at the same time. That way you know you do not have to worry about renewing the consent in the future.

May be worth a chat with a broker

Dave_Ham

Echo above sentiments..

You could also get the let to buy property on interest only terms and therefore a small passive income for you both...

Rule of thumb is you can take out upto 75% of value, subject to credit file and rental figures..

Would suggest a chat with your Dad and a broker..

Good luck