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Second Residential Mortgage, what chances?
Flynnie
Posts: 3 Newbie
Hi, I'm new here so please be gentle with me!
It's been eight years since we applied for a mortgage and I'm out of the loop so any advice would be appreciated.
We have a flat in negative equity (about £10k ish). It's way too small for us now an is costing a fortune each month in external storage facilities so we applied for consent to let and this was granted (B'ham Midshires). Rent would equal 100% of the mortgage payment, maybe slightly more. Our plan is to rent it out and overpay that mortgage for the next 2 years and then we should be in a position to either sell and make a profit or keep it and convert to buy to let.
We've saved a 20% deposit on a new place and have checked our credit reports and both me and my partner have top scores of 999 on Experian, the only issue is on my report with Equifax where there were two late credit card payments dating back to late 2007 and one in early 2008. We've also found a house we like in a price range much lower than our maximum likely lending limit to make sure we can still afford it if the interest rates rise, or if our flat is untenanted for a long period of time.
I've contacted a whole of market broker who assessed our requirements and says that affordability isn't a problem and provided mortgage quotes, however I've read so much lately about how strict lenders are that I'm still cautious about applying and actually going ahead with this. Do you think we have a good chance of actually getting a mortgage? I can't help but think that it all sounds too easy and there is something I'm missing!
Any advice greatly appreciated
It's been eight years since we applied for a mortgage and I'm out of the loop so any advice would be appreciated.
We have a flat in negative equity (about £10k ish). It's way too small for us now an is costing a fortune each month in external storage facilities so we applied for consent to let and this was granted (B'ham Midshires). Rent would equal 100% of the mortgage payment, maybe slightly more. Our plan is to rent it out and overpay that mortgage for the next 2 years and then we should be in a position to either sell and make a profit or keep it and convert to buy to let.
We've saved a 20% deposit on a new place and have checked our credit reports and both me and my partner have top scores of 999 on Experian, the only issue is on my report with Equifax where there were two late credit card payments dating back to late 2007 and one in early 2008. We've also found a house we like in a price range much lower than our maximum likely lending limit to make sure we can still afford it if the interest rates rise, or if our flat is untenanted for a long period of time.
I've contacted a whole of market broker who assessed our requirements and says that affordability isn't a problem and provided mortgage quotes, however I've read so much lately about how strict lenders are that I'm still cautious about applying and actually going ahead with this. Do you think we have a good chance of actually getting a mortgage? I can't help but think that it all sounds too easy and there is something I'm missing!
Any advice greatly appreciated
0
Comments
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Rent would equal 100% of the mortgage payment
Only interest is a tax deductible expense. Any profit you make is taxable.
Personally I would overpay the current mortgage by as much as possible, then sell the property when moving on.
Too many risks in holding onto it. Selling it at a later date will require you to have cash saved. As the property will need to be empty before you can market it.0
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