Is this do-able - opinions please

joe_purdy

Hi

I saw someone at the mortgage advise bureau who said this was do-able but wants to charge me about £700 to set up the two mortgages which im not going to pay, going to see someone else tomorrow but just wanted to ask opinions on here

I have lived in my first home for just over 12 months. I had it valued at 65-70k this week and i have a 23k mortgage on it, im 1 year in to a 5 year fix with nationwide

Ive seen a house which seems perfect for me but is a repossesion and is 50k

Is there anyway of me getting another mortgage for the new house by releasing some equity from my original home. I'm thinking or turning my orignal house to a buy to let, it would rent for 400pm.

So i would have 73k worth of mortage in total

I earn £15,680 a year including from work and working tax combined.

Thanks

Dave_Ham

There is loads to add on this, although do not agree that £700 is too high a fee to pay. The fees from the lenders will not amount to much considering the value and given a let to buy scenario and a repossession (which may not even come off as the price rises) then you can almost certainly expect to pay a fee, or get poor service.

Repo's hardly ever go for the amount they are listed/marketed at and often can increase at the last minute when you have incurred cost.

You are going to have Early Redemption Charges on the Nationwide mortgage, although assume you know this unless you port which will be covered in risk on a repo purchase. Porting will be tricky if not impossible as Nationwide will include the new mortgage in affordability still as not been let previously, so unlikely to fit.

You will have limited options on the let to buy given your salary and makeup of income and this could also affect the new mortgage.

There are many variables to consider here, you may be well off paying for decent, formal advice as sometimes you do get what you pay for.

All the best