Hoping to rent out my flat and buy a house !

phil_744

Hello,
Please can anyone advise some information on the below questions -

I am presently staying in a newly refurbished 1 bedroom flat (block of flats had dry/wet rot and has been fully refurbished with a 25 year warranty, new roof, new double glazing windows, pointing, new kitchen etc) Current outstanding balance of 33,000 mortgages. Going by the present market situation and other flats beside my area going for sale for about 60'000 pounds (not been refurbished).

a) Could I re-mortgage my flat and use the equity towards my new house? Or just use enough money from the equity to pay for the deposit on the new house i.e. 10 %. ?

b) The rental market around my area is very high i.e. the flat is located in the city centre of Aberdeen and in the catchments of the city hospital, Oil work, university and college.

If I rented my flat out I would receive approx £450 a month.

Looking in to buying a 140'000 pound house.

We have a combined income of 45,000 pounds.

I have checked with my current mortgage provider and I would have to move mortgages if I rented out my property.

Ideally I would like advising from other people who have done this in the past.

Thanks very much for any advise in advance.

David.

herbiesjp

What you could do is re-mortgage on a BTL to raise some equity - no probelm. Looking at the figures you should be able to raise the amount you say i.e 10% of £140k.

These would mean £14k on top of a 33k mortgage = 47k against a value of £60k roughly. This is around 73% loan to value. Rental income stated should also be OK.

With the deposit raised your income should be sufficient to get the mortgage on the new property.