Can I remortgage current home to purchase a BTL?

GMS

If you have 15% CB saved then you are looking to do something for your child anyway so consider using this.

Do not focus too much in 25% deposit. Aim for as much as possible as it could make life easier. Make sure you are comfortable with the borrowing as some of it will be against your home.

Regarding the purchase of the flat. Don't let your heart rule your head. There is a sentimental attachment there. Do the numbers carefully. Check service charges and ground rent. Make sure it would turn a profit for you as a BTL.

Pipjo

Thanks Holly

Yes 17K sole earning and they wont add any benefits which is sad as reaches that 20K figure if they did.

Solicitors I have avoided as I know is £££s and I dont have £££s I have no one to act as guardian etc either so a solicitor would cost £££s <bury head in sand>. This is driving me to an early grave alone the worry as my child would be vuln all ways esp financial. I should really sit back and not worry and give work up but I want to be in control not some SW who has no emotional care for my dc welfare etc He's only 9yrs old and trying to plan for his adulthood the childhood years are just one big worry for the next decade. I am sure all parents worry like this. But my dc is vulnerable:(

I don't want to be 70yrs old worrying what will happen to my dc when I die! That's if I get that far? I need to get it sorted asap esp as only child no other relatives only my elderly mum.

I will ring around brokers tomorrow and come back for more advice, thank you all as in a right pickle over it!

Pipjo

GMS the charge is 1800 annually but that includes water rates. I am not sure of Council tax band yet? But estate agent said it is 8% return, but it is the fact it is secure and safe for my dc when older! That for me is priceless although I am penniless!

I was told I would get 500-550 rent a month. I don't have a clue if that equals 8% return mind you? The flat just needs new grill/oven, microwave, washer/tumble dryer, fireplace and electric fire oh and carpets cleaned well or ? new ones. It is big and I could put up petition and turn into 2 bed (but single beds only) so dont know if this would work or benefit the rental income?

jennifernil

That sounds like a high rent for a 1 bed flat, but of course I am not familiar with the area. I think you should look into that a bit more.

Also the annual charge sounds high, even including water.

I can understand your concern for your child's future, but once you are mortgage free you could start saving your current mortgage payments to build a little nest egg.

If and when your son needs his own place, would the value of your current property not be enough to buy a 1 bed flat for each of you?

That is what I would do, less risky than taking on more debt.

Being a landlord is not always straightforward, so needs a lot of thought, but if you decide to go ahead, if I were you, I would be looking to raise the funds required as a remortgage of your current property.

What you can borrow will be limited by your income and the length of the mortgage of course. HSBC have some fee free tracker mortgages at good rates, so worth looking into.

BTL mortgage rates are generally higher, and the fees to set up the mortgage can be very high, so remortgaging could well make better sense, but you will need to be comfortable with the monthly payments and bear in mind that rates are likely to rise in the future.

Pipjo

Thank you Jenni

I have already thought about buying a 2 bed flat their but they are a lot more expensive than my 3 bed detached. So I would at present not be able to afford 2 properties their...but yes that would be a dream! This one bed was 140K when sold new 9 yrs ago and it is 30K cheaper than next 1 bed for sale as no appliances etc. This property is a nest egg as well as if my dc does well and can manage to have a relationship/marriage/kids etc it would help him move up ladder. But I must be honest and accept my dc wont be interested in anyone. It is also a quiet and very spaced out area with it's own beach and I know my child is better in quiet and less crowded places. It's perfect!

I would prefer to use it as holiday home but my finances does not cover all that. So would only lend it out until my son can live their hopefully in 10 years time.

Their isn't anywhere else quite like this place! Unless you move to Silicon Valley with these communities. Now that place I could never afford and esp designed for the these people who need the right environment.