Is this possible?

tp023

Presently own a house. 130k mortgage left. Identical property sold next door for 179k so approx 49k equity.

Joint income of 90k per year. No debts. 45k savings.

No credit problems.

Seen a house we like at 300k.

Possibly thinking change the existing house to buy to let (interest only???) and rent out.

Purchase new property on repayment with a 10% LTV.

Is this workable?

Thanks in advance

kingstreet

You don't have to change to buy to let. You can simply ask your current lender for consent to let, although this probably wouldn't include an alteration to interest-only. That would probably take a formal BTL application and the fees/costs that would entail.

Some lenders won't like the 10% deposit. Many have lower maximum LTVs for second properties, such as Nationwide (85%) and Santander (80%).

You'll also need a lender prepared to ignore the let property/mortgage in the background, so they don't "tax" your income with the mortgage payments.

tp023

Thanks. Ideally would like to sell before I buy and increase the LTV but don't think I'll have the time. Should get 750 pcm for the original property so that should help offset the higher interest rate of the 90% LTV.