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Additional Borrowing to buy a rental?
delirious
Posts: 187 Forumite
We have recently bought a house to use as our home whilst renting out my old house. Our new house has a 75% LTV mortgage on it and we've been doing a lot of work since buying it which has hopefully increased it's value a bit. Mortgage is with Halifax.
My wife and I would like to buy another rental house (around £65k) and were wondering whether additional borrowing from Halifax would be a viable way to fund the 25% deposit required. We're fortunate enough to have some friends that would want to rent the house on a long term basis and we are willing to do work if we buy a fairly run down property but it's getting the deposit that's the unknown.
Just wondered if anyone had done similar or if any mortgage advisers could offer opinions.
My wife and I would like to buy another rental house (around £65k) and were wondering whether additional borrowing from Halifax would be a viable way to fund the 25% deposit required. We're fortunate enough to have some friends that would want to rent the house on a long term basis and we are willing to do work if we buy a fairly run down property but it's getting the deposit that's the unknown.
Just wondered if anyone had done similar or if any mortgage advisers could offer opinions.
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Comments
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No. Maximum is 80%, so probably insufficient equity for the amount you need.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
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kingstreet wrote: »No. Maximum is 80%, so probably insufficient equity for the amount you need.
What is the 'no' in reference to?
In regards to equity, our house cost us £178,000 so the additional 5% would be £8,900. If the house value has increased due to the additional work we've done, we hope we would get the £10,000 minimum amount that Halifax would lend and we could fund the additional £5-6k.0 -
No, was to this.wondering whether additional borrowing from Halifax would be a viable way to fund the 25% deposit
It was not clear if the 5% equity between 75% and 80% would be sufficient, so I assumed it wouldn't.
You didn't mention savings, just the additional borrowing.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 -
Ok, thanks and sorry, should have been clearer.
Will Halifax allow additional borrowing to be used for a deposit on a rental?0 -
Dunno. You'll have to ask them.
Brokers don't often get involved in further advances, so you may have to wait for a response from someone who has tried this in the past.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
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