Selling one house, keep other and buy together? Help!!

kazire

I'm in need of some advice just to find out what is the best option available to me and my boyfriend.

I own a house currently rented out and has 100,000 equity
Boyfriend owns house about 95,000 equity and we want to sell this one and buy a house together and keep mine rented.

He earns 36,000 I earn 26,000

In order for us to gain a larger mortgage what would be the best thing to do? Take out the equity in the rented property, but would this change the affordability of the joint mortgage?

Also any ideas roughly what we would be able to borrow?

Thanks in advance

Thrugelmir

What sort of purchase price are you considering?

kazire

It depends on how much we are likely to be able to get ie without sounding greedy but we want as much as we can get

Thrugelmir

If you sold both properties then you would pay a lower rate of interest on the mortgage , as you would have a better LTV.

Just a thought.

kazire

Yes I am aware of this but we do want to hold on to my property for the future.

Would it be worth taking some of the equity out of it or leave it out of the equation

We are unsure how much we would be able to borrow as to whether it's even worth thinking about moving

chanz4

is it buy to let?

kazire

No it is currently ctl

Thrugelmir

kazire wrote: »

Yes I am aware of this but we do want to hold on to my property for the future.

Would it be worth taking some of the equity out of it or leave it out of the equation

We are unsure how much we would be able to borrow as to whether it's even worth thinking about moving

You need to crunch the numbers so to speak. With a number of scenarios in order to view your options. As switching to a BTL mortgage may well change the potential profitability of the letting plan.

In addition releasing equity and the use of the equity may restrict your options with regards to mortgage lenders. As not all now play ball.

If you are unsure what to do. Sit tight. Until the fog lifts.