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Mortgage confusion!

jonahea · 2012-08-01 17:29:12

I am currently mortgage free on my house that I own worth about £150k. I am looking at an investment buy-to-let second property for £115k and plan to rent it out for about 500pcm. (Either private or to my son). I was wondering if I could re-mortgage my current home and buy the second property outright or would I still…

Comments

Wh05apk Posts: 2,938 Forumite

2 August 2012 at 7:20AM

Thrugelmir wrote: »

Not misread at all. Many lenders will expect the deposit to be funded by the potential borrower. Not funded by the borrowing applied for on the existing property. Basic risk management.

Many people built their property empires by leveraging on increased equity values in the boom credit years. Times are changing.

Never come across that nor has Dave, but then we are only brokers doing this on a daily basis.

I am a mortgage adviser.

You 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.

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