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Converting Mortgage Advice
towl
Posts: 10 Forumite
Hi,
My Wife and I need to relocate, but are struggling to sell our current property, It is valued at £180K and we have an £80K mortgage on the property.
A friend mentioned a Let to buy mortgage (not buy to let). I was thinking of releasing £40-50K of the equity for a new property, and renting out our current property, my confusion comes, on how mortgage companies would view this when it comes to applying for a new mortgage on a new property, would they deduct my mortgage payments from my income, when it comes to calculating the ammount I can borrow, or would they only look at any shortfall (if there weas one) between mortgage payments and rent income?
Does any one have any experience of this type of mortgage, or any other advice on how best to go about this?
Cheers
My Wife and I need to relocate, but are struggling to sell our current property, It is valued at £180K and we have an £80K mortgage on the property.
A friend mentioned a Let to buy mortgage (not buy to let). I was thinking of releasing £40-50K of the equity for a new property, and renting out our current property, my confusion comes, on how mortgage companies would view this when it comes to applying for a new mortgage on a new property, would they deduct my mortgage payments from my income, when it comes to calculating the ammount I can borrow, or would they only look at any shortfall (if there weas one) between mortgage payments and rent income?
Does any one have any experience of this type of mortgage, or any other advice on how best to go about this?
Cheers
0
Comments
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Let to buys are dead easy. you can remortgage your prop on a Buy to let mortgage and raise the deposit for the new house and then go for it in the normal way. some lenders will check the rental covers the mortgage on your old house but thats about as far as it goes. Almost like being a first time buyer again. Easy via a fees free mortgage broker any way.I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0
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