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Buy-to-let mortgage problems
liz_career_break
Posts: 5 Forumite
I have a flat that I own outright. It's been let at the moment and I want to take out a mortgage on it so I can buy somewhere else.
The problem is that firstly I don't live in the flat, secondly I was out of the country for over a year (I have now been back in the UK for 14 months) and thirdly have only recently started a new job.
How do I get to release £120,000 of equity from my flat so I can buy somewhere else?
any ideas????
The problem is that firstly I don't live in the flat, secondly I was out of the country for over a year (I have now been back in the UK for 14 months) and thirdly have only recently started a new job.
How do I get to release £120,000 of equity from my flat so I can buy somewhere else?
any ideas????
Liz
0
Comments
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How much is the flat worth?I am a Mortgage AdviserYou 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.0
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as you have already found out Lenders might be concerned that you already have one rental property and want to buy another But do not have a Home of your own.
Are you trying to get a BTL mortgage on a property you will live in!
You have been away so little credit history and are you on the electoral role etc
You have recently started a new job so at least you are working!0 -
Typically, if you can overcome the residence issue, you'll be able to borrow (the lower of) 75% of the value of the property and the rental income = monthly mortgage interest x 125%, assuming a rate of 6% pa.
For example, the property would need to be worth at least £160k and have a rental income of at least £1,000 per month to make the plan work.
See a whole market broker for the best chance of success.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 -
Hi guys,
The flat I am renting (that I want to take the mortgage out on) is worth £220,000 and brings in £920 a month gross in rent
The flat I want to buy is not one that I will live in.
I am on the electoral role since coming back to the UK.
What's a 'whole market broker'?Liz0 -
Also interested in this, i have £140k equity and looking to release about £50k, which is only 35% LTV.0
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