Advice Sought On 2nd Mortgage ..

ThankYouAndEnjoy!

Hello

My partner and I have a total yearly wage of £32,500

We currently have an outstanding mortgage of £95k ; the property we live in has £35k equity. Our monthly mortgage payment is £491; we currently make overpayments of £500 / month comfortably.

I am looking into the possibility of purchasing a second property; either to rent or sell on. My query here, based on the above figures and taking into consideration an expected Investment Return (please see sig) are we able to obtain a second mortgage for the formentioned reasons? If so, could anyone shed some light on:

A. How much could we take out on our second mortgage and
B. Which mortgage would best suit our needs?

If we do decide to rent the property out, we would be looking at a rental return of £600 a month (before expenses) -

Obviously, due to the Investment we will not be in a position for some 13 months to proceed; but feel planning in advance will only increase our available options later


Kind Regards

MortgageMamma

How do you intend to fund the purchase of the second property? by remortgaging your existing one to raise the deposit and take a buy to let mortgage (if you are renting it out)

or do you just want to buy a second property ona residential mortgage?

ThankYouAndEnjoy!

Hello

Thankyou for your speedy reply.

I guess it would be in my best interest to remortgage my existing mortgage to raise the deposit; as if i took out my Stock Investment in one lump sum, i would be liable for £1000s in CGT. I have also worked out that dividends on the investment over the 4 years it would take to remove without CGT charge would net me an extra £5k

Would this sum of monies (£35k equity) be acceptable as a deposit for a buy-to-let investment? How would our existing mortgage be taken into consideration when working out our allowable buy-to-let amount?

If it would be more beneficial to remove the monies within the Investment for deposit, then i would consider this if i could assure myself it was in my best interest (if i find the right property for the right amount; and my CGT losses would be offset by a higher return on investment etc)

Am i in a position to be offered both a residential mortgage and a buy-to-let mortgage - depending on which above option i take? -

Also, could i remortgage and use my investment for a £70k deposit?

Sorry for all the questions ....

Kind Regards