interest mortgage

moveonup_2

hi i have paid the mortgage on my home but would like to move to a bigger house,the house i live in at the moment is worth £120,000,the house i would like to buy is worth,£130,000,not sure wether to rent my house,and get a interest only mortgage on the house i want to buy ,also i have £30,000 savings any advice please

dj.boz

Are those numbers correct? If so then sell your house, use some of your savings and buy the property that you would like?

How much bigger is it for the extra £10k?

moveonup_2

four bedrooms,the one i am in at the mo is 2beds

holly_hobby

The lenders that currently remain open to interest only residential business, will restrict LTV, and will want an acceptable independent repayment vehicle in place (ie saying you will sell the property itself to repay the loan, is no longer accepted).

To which a 2nd property may be accepted by lender, but typically it must be unencumbered (mge free).

Letting your current property

You could seek consent to let from your current residential lender (typically time bound for circa 3 yrs), or remortgage onto a dedicated buy to let mortgage subject to status (which you will need to do if you wish to release any equity from your currnet property, to facilitate your next move).

Hope this helps

Holly