We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Raising money for a deposit
CATS
Posts: 286 Forumite
Hi Guys,
I hope some of you might be able to help. We currently own a house and have about £75k in equity. We are just in the process of remortgaging to a better fixed deal.
We really want to buy a bigger house, lets go with the assumption that the mortgage lender has given permission to let our current property. Can we take some of the money that we have in the house to use as a deposit for another house?
What are the implications, apart from obviously the interest going back up as it will take us above 75% LTV.
We have a household income of around £100k. We are not looking to do it straight away, maybe in another 5-6 months.
Thanks
I hope some of you might be able to help. We currently own a house and have about £75k in equity. We are just in the process of remortgaging to a better fixed deal.
We really want to buy a bigger house, lets go with the assumption that the mortgage lender has given permission to let our current property. Can we take some of the money that we have in the house to use as a deposit for another house?
What are the implications, apart from obviously the interest going back up as it will take us above 75% LTV.
We have a household income of around £100k. We are not looking to do it straight away, maybe in another 5-6 months.
Thanks
0
Comments
-
If you remortgage now, chances are you will get short shrift asking your new lender for consent to let in a few months time...
They will not normally permit additional borrowing for the purpose you describe at the time of a request for CTL. Not to mention any early repayment penalties you get tangled in if you decide to move.
You'd probably be better off remortgaging to a let to buy product at the time, rather than remortgaging now. You'll be able to borrow upto 75% loan to value, or, if lower the amount reached by taking;-
rental income = 125% of monthly mortgage interest assuming 6%pa.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards