Mortgage / Remortgage / Equity Advice pls.

amesr

Hello all

Own a mortgaged flat which was bought 3 years ago. We are planning to move into a larger 3-bed house as the family got bigger. Planning to utilise the equity of ~ £50k from the present property to serve as deposit for the future one. Current ‘flexible’ (redemption free) mortgage provider is Abbey with whom the 3 year tracker finished few months ago. I’m unsure of the following:

Is it possible to release the equity from the present flat without getting into another mortgage deal?

Ideally we would like to rent out the present flat after we move into the new house which means the present flat becomes buy-to-let investment, hence remaining in a ‘flexible – redemption free’ mortgage after drawing the equity is critical. Is this possible?

Greatly appreciate any suggestions

JoeK_3

1) You need a let to buy mortgage on your present flat and subject to the assessed rental income, you could release up to 95% of the property value.

2) How much is the new property value?

3) What are your incomes?

JoeK

amesr

Thanks JoeK

1. Present Flat valued at £155k - outstanding mortgage £95k # Releasing about £30k will do for me
2. New house - £230k (planning a 10% deposit)
3. Our income : £30k + 25k

JoeK_3

What rental income would the flat bring in realistically?

JoeK

amesr

£650 - £700 / month

JoeK_3

By jove things are tight.

You may pull off the let to buy iif the lenders valuer assesses the rental as you have and you will need a 4 x joint income mortgage.

Have you got a good whole of market mortgage broker?

JoeK

amesr

Yet to find a mortgage broker. Natwest tentatively agreed to lend up to £270k, which is well within my budget. BTW, with Buy-to-let, I'm only looking to pay the interest.

thanks