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Can we go BTL and purchase another home?
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[Deleted User]
Posts: 0 Newbie
We currently have a 3 bed detached home which costs us roughly 1050 pounds a month in mortgage with Nationwide and we are thinking of going BTL and purchasing another home?
We have about 70,000 pounds collateral in our current house and owe about 190,000 pounds on the mortgage.
We also have 75,000 pounds in savings now and are looking at houses around 360,000 pounds.
We would probably get about 900 pound a month in rental for our current house in the current market and we think we could get someone in very quickly going off recent rentals in our road.
Do you think this is a feasible idea with todays new mortgage rules?
We have about 70,000 pounds collateral in our current house and owe about 190,000 pounds on the mortgage.
We also have 75,000 pounds in savings now and are looking at houses around 360,000 pounds.
We would probably get about 900 pound a month in rental for our current house in the current market and we think we could get someone in very quickly going off recent rentals in our road.
Do you think this is a feasible idea with todays new mortgage rules?
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Comments
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Subject to...
Yes you can do thisI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
£70K plus £190K = £260K which any BTL lender will knock down to £250K think stamp duty but this still gives you 25% equity so you should get a BTL mortgage if the interest only mortgage is 125% of the rent!
Now £190,000 at 4% Interest only works out at £633.33 if you can get that rate?
If you can rent at £900 you should be OK but why do you want to be a Landlord?
£70K plus £75K is a much bigger deposit and LTV under 60%
How much stamp duty will you pay on £360K =£10,800+ moving costs, legals,searches, etc
Your call but I would check the rates for a 80% mortgage on £285,000 first as you stand to make what £200 a month from the rental property0 -
Don't really want to rent it but if my current house sale falls through then we need an option as we don't want to live there any more.0
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Price the property right and it will sell.0
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It is priced right but due to issues with a management company taking over 6 weeks now and no end in sight I am not sure how long the buyers will wait?0
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