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Advice on my current situation please
joecox92
Posts: 12 Forumite
Hi There,
I currently own outright an apartment with the value of £75000. I wish to apply for a let to buy mortgage with the mortgage works to borrow the deposit out of this for a new home and rent out at 400 - 450 pcm (this has to be the mortgage works as they have no criteria on age or income).
The mortgage is a 2 year fixed at 4.49%.
Now....
The house I wish to buy is on the market at £105,000. This will be joint with my partner.
We are looking at borrowing £68,000 so need to stump up £18,500 each for the deposit..
The mortgage I have found for the purchase is a 2 year fixed with FD 3.19% no fees.
I have an income of 15k which will increase to 17.5k by October, can anyone see this being an issue?
My main question is.......
because I can borrow up to £56250 out of my apartment (75%) would it be worth borrowing more at 4.49% and applying for an offset mortgage instead to reduce term or payments?
What would my payments decrease to etc (I cant find a calculator for this)
The reason I am not borrowing the full amount straight away as this is the first house purchase with GF so want to make it even etc.
If it is not feasible I may well just borrow the deposit, plus a full S&S ISA allowance for a year.
Sorry this has been a bit of a ramble but I have so many numbers going through my head I would just like some friendly advice !
I currently own outright an apartment with the value of £75000. I wish to apply for a let to buy mortgage with the mortgage works to borrow the deposit out of this for a new home and rent out at 400 - 450 pcm (this has to be the mortgage works as they have no criteria on age or income).
The mortgage is a 2 year fixed at 4.49%.
Now....
The house I wish to buy is on the market at £105,000. This will be joint with my partner.
We are looking at borrowing £68,000 so need to stump up £18,500 each for the deposit..
The mortgage I have found for the purchase is a 2 year fixed with FD 3.19% no fees.
I have an income of 15k which will increase to 17.5k by October, can anyone see this being an issue?
My main question is.......
because I can borrow up to £56250 out of my apartment (75%) would it be worth borrowing more at 4.49% and applying for an offset mortgage instead to reduce term or payments?
What would my payments decrease to etc (I cant find a calculator for this)
The reason I am not borrowing the full amount straight away as this is the first house purchase with GF so want to make it even etc.
If it is not feasible I may well just borrow the deposit, plus a full S&S ISA allowance for a year.
Sorry this has been a bit of a ramble but I have so many numbers going through my head I would just like some friendly advice !
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