Using equity from one property for mortgaging another?

patrick86

Hi, I have a few mortgage questions and would really appreciate advise on how equity works as I am a first time buyer.

Essentially we have £300,000 and we are considering buying a property to buy to let for around £150,000 which would be mortgage free. However we are also looking to purchase a house for around £600,000 (with the remaining £150,000) around a year after we buy the mortgage free property.

Myself and my partner currently earn £86,000 between us so my questions are:

Would we be able to use the equity in the mortgage free property against the other properties mortgage?

Would we be able to get a mortgage to afford both properties?

Thanks so much for reading and i hope someone can helps explain this for us.

Many thanks
Kind Regards Patrick

GMS

To borrow 450k to purchase a property on a joint income of 86k is just over 5 times income so it will be difficult.

Why not use a 30% deposit for the BTL purchase and keep a further 100k ish towards the new purchase.

Higher mortgage would mean more to offset in interest against income tax.

Borrowing 350k for the new purchase would be easier than 450.