Nearly Mortgage Free - Buy Again?

Alias_Omega

A weird post in here, but maybe I am thinking out loud..

Are there any mortgage companies that will offer 100% LTV?

Mrs AO has realised that there is less than £4,000 left on the current mortgage (we've overpaid to the max for the past 3 years) and now wants to buy another house.

Moving means we can ditch the 2nd Car, tied it with nursery fee's stopping means were somewhat £300-£350 per month better off as well.

The plan..

1) Wait 6 months, House 1 paid fully off. Then go for 100% mortgage on new house, Rent old house.

2) Speak to Financial Advisor, Go for 100% mortgage now, plus £4k on new house, Rent old House.

3) Wait 6 months, pay house off. Wait 6 months more, Save deposit, then go for mortgage.

We have rented our house before when we lived overseas, it ranged from £420-450 pcm, but we let it for £390 to make it the cheapest in the area. After fees/maintenance etc it was roughly £2200 per year profit.

getmore4less

No 100% mortgage

No numbers in the post will make it hard to judge what is viable.

Alias_Omega

Income and stuff details removed

dimbo61

Value of current home?
What price you want to pay for next property?
Income, savings etc
If you are starting a business ( which you are!) I would get professional advice.
You can offset the Interest you pay on a rental property against Tax you have to pay on rental profit.
So you could remortgage your Home onto BTL and Interest Only and use the money as deposit on new home.
Speak to an accountant, IFA and mortgage broker

hcb42

you are going to need a deposit with this plan, plus a couple of K for fees etc

Why don't you just move, still get the benefits but less risk e.g. if you lost job or anything like that?

Alias_Omega

I had this chat with Mrs AO, we've rented the property, and was given Consent to Let Free of Charge of the nature of my work.

I also said that its best that we rented the house with the higher income, as if £120k over 30 yrs fetched £400 interest + £100 capital for example, then we could offset the rental income off the interest, then dump the extra cash we have into the capital part.

However, Mrs AO does not see it this way...she wants to live in the better house, and says that moving will save us £300 ishy per month which is the extra we would have by doing the above.

Alias_Omega

hcb42 wrote: »

you are going to need a deposit with this plan, plus a couple of K for fees etc

Why don't you just move, still get the benefits but less risk e.g. if you lost job or anything like that?

I would love redundancy, that would be a clear £80-90k lump sum.