Let to buy- where do I begin?

qwerty30

Good afternoon all, Can anybody give me any advice on Let to Buy? I understand (more or less) how it works, and we are definitely in the position where we have a house that would be easily rentable, we have seen a house we would like to buy (in a different area) and we would like to hang on to the current home, realease a bit of equity in the current home, to go towards renovations or deposit on the new property. But let to buy doesn't crop up on the online calculators etc, as far as I can find. Are we best to go via a mortgage broker for this kind of thing? I did manage to sort the original mortgage myself using online comparisons etc and got a good deal in the end, but this isn';t so simple. Thank you for any advice!
Jo

Thrugelmir

Releasing a "bit of equity" may restrict your options. Are you in a position to fund the deposit on the new property yourselves, or is borrowing a necessity.

qwerty30

Hi, thanks for speedy reply. We do have enough in savings to use as a deposit, but the new place needs some money spending on renovations. So we would need to either use our savings as deposit, and release 10K towards renovations. Or release 10K from equity to use towards deposit, and keep back 10K of our savings to begin renovations, saving up more as we go along. Percentage-wise, current home is worth about 120,000 and has about 45,000 equity in it.

ch3101

you'd potentially be okay asking your mortgage provider for "permission to let" , it may cost a couple hundred quid.
otherwise, buy-to-let mortgages normally require 30-40% deposit, which would max you out on your current property so no equity would be released.

definitely phone your mortgage provider tomorrow and ask what they can do.