remortgage

amjed_afzal

ViolaLass wrote: »

So if you bought property 1 for £43k, how come you now have a mortgage for £49k?

The mortgage that I was given was 33, 000 buy the bank but my overall payments for 25 years would be around 53, 000
Am I making any sense

dotdash79

If you wanted to pay off the mortgage today how much would that cost you? For each property.

This means you would never pay the future interest.

Or tell use the following

Amount borrowed, Interest rate, payments per month for each property (don't put them together)

ViolaLass

amjed_afzal wrote: »

The mortgage that I was given was 33, 000 buy the bank but my overall payments for 25 years would be around 53, 000
Am I making any sense

Barely. When someone asks you how much you owe, it is standard to quote the amount you owe at that point, not how much you're going to pay back overall.

Smithy7876

So are you saying both properties were brought on a 90% LTV mortgage (10% deposit)?

Using the figures in post #17 this would make the mortgages as below
Property 1 - £38700
Property 2 - £36000
Does this sound right?

Based on both properties being worth £55k then you would have £16300 equity in property 1 and £19000 in property 2 less any payments that had been made (The repayment part only, not interest which is high in the first part of a mortgage so I would work on not having paid anything off). I would also say a £55k value seems extreme as that represents an increase of 28% and 37% respectively which seems extremely high.

As mentioned you shouldnt let out a property brought on a residential mortgage so I would be vary wary about that.

To clear up the apparent confusion, you dont owe the lender the interest over the entire mortgage unless you complete the whole term. If you give the money back, either cash or another mortgage etc, then they cannot charge you interest on it. Of course there is usually fees etc to do with early repayment.

amjed_afzal

Smithy7876 wrote: »

So are you saying both properties were brought on a 90% LTV mortgage (10% deposit)?

Using the figures in post #17 this would make the mortgages as below
Property 1 - £38700
Property 2 - £36000
Does this sound right?

Based on both properties being worth £55k then you would have £16300 equity in property 1 and £19000 in property 2 less any payments that had been made (The repayment part only, not interest which is high in the first part of a mortgage so I would work on not having paid anything off). I would also say a £55k value seems extreme as that represents an increase of 28% and 37% respectively which seems extremely high.

As mentioned you shouldnt let out a property brought on a residential mortgage so I would be vary wary about that.

To clear up the apparent confusion, you dont owe the lender the interest over the entire mortgage unless you complete the whole term. If you give the money back, either cash or another mortgage etc, then they cannot charge you interest on it. Of course there is usually fees etc to do with early repayment.

Yeah that does sound about right.
So do you think I can remortgage as the repayments have not been much as I bought the properties last year.
How much remortgage can I get?
I basically need money for a deposit on another buy to let property that I like
Basically I want to clear the original mortgage and het abit extra money for the deposit on the other buy to let which I want to buy
Is this possible
In advance a big thank you for your help
Please advice

kingstreet

The maximum loan to value on a BTL remortgage is going to be 75%, maybe 80% at a push. Does the outstanding mortgage and any early repayment penalty payable go above 80%? If it does, you simply cannot remortgage.

In addition, your rent will need to be at least 125% of the monthly mortgage interest assuming an annual rate of 6%.

For example, a property worth £55k can be remortgaged upto £44k and the rent would have to be £275 per month.

You must adhere to both the maximum loan to value and the minimum rent requirement.

Smithy7876

amjed_afzal wrote: »

Yeah that does sound about right.
So do you think I can remortgage as the repayments have not been much as I bought the properties last year.
How much remortgage can I get?
I basically need money for a deposit on another buy to let property that I like
Basically I want to clear the original mortgage and het abit extra money for the deposit on the other buy to let which I want to buy
Is this possible
In advance a big thank you for your help
Please advice

Anything is possible but the only people who can tell you definatevly is the bank, not any one on a forum

fiesta04

It seems OP does not understand the basics of mortgages, let alone how to make it a business!!!!!

F4

amjed_afzal

kingstreet wrote: »

The maximum loan to value on a BTL remortgage is going to be 75%, maybe 80% at a push. Does the outstanding mortgage and any early repayment penalty payable go above 80%? If it does, you simply cannot remortgage.

In addition, your rent will need to be at least 125% of the monthly mortgage interest assuming an annual rate of 6%.

For example, a property worth £55k can be remortgaged upto £44k and the rent would have to be £275 per month.

You must adhere to both the maximum loan to value and the minimum rent requirement.

Thanks for your reply
My mortgage left on property 1 is around 33, 000 plus including chargers which I need to look at the document but probably be standard chargers

My rent one each property is £400pcm.
D9 you think I can get remortgage

ViolaLass

Why not just ask your mortgage provider?