3rd house possible in our situation?

Xmas

I own 3 bedhouse a outright worth £160000 and live in it I also own a 2 bed terrace outright worth £100000 and rent it for 545 a month

I'm considering renting My house out to move to a bigger one as running out of space my house would rent fir about £700 a month

I also havsaid investments of around £200000 which gives me about 6000 a year income I would use part of this for a deposit

My partner works full time and earns about 18000 a year

We have about 500 of debt that on a pay later plan with argos that will be paid off shortly so no other debt to count

We have seen a development with a house that'll be built next year at 270,000 doesn't seem overpriced compared to others on the market

My question is do you think it'd be out of the question to look at this with our finances?

Neither of has had a morgage before and I'm wondering if I'm being over ambitious to think a bank may lend to us for this house. Ii was thinking of putting a 30/40% deposit down

Basically any experts around to advise on my situation

00ec25

there are lots of on line mortgage calculators which will show you how much you can borrow but not all lenders will accept rental income as a part of your total income so you will be restricted to fewer lenders - go see a whole of market broker and see what they can advise

with 40% deposit you need to borrow 162,000 which is well over what would be loaned if the only income is 18K from your partner. Your rental income will not be included for many lenders because it is classed as "uncertain" in comparison to employment related income

oldskoo1

If you sold your 2 properties You would only need between 30 and 40k mortgage if you wanted to keep a bit of cash for renovation - grossly overestimated sale and moving costs included.

The ROI on your 200k is quite low so i'm not sure what that is in.

On 18k if you sold your houses it would be ok but weight it up with the huge increase in council tax, heating, water, insurance possibly, running costs etc. against the cost of running a rental property, management fees, new carpets, decorating, servicing etc etc / hassle.

Like the other person said, if you needed about 160k to borrow and you could borrow it somehow, your mortgage at a guess on good LTV rates would be in the region of 750 - 850. Your letting income would cover it but if 1 house stayed un rented for any period of time you are going to be in a very difficult position which is why banks are unlikely to lend on that type of income.

Xmas

Ok not looking too positive then

I want to keep both houses as future investments don't think it would be good to put all money in one pot

Wouldn't need any renovation money would be walk in condition

Other option I had thought of was mortgaging my current house on a btl mortgage and paying the rest of the house of from my investments

Fire_Fox

Go see an independent mortgage broker.