Can we rent our current house? And buy again

chances

Current house on the market and not been much interest, we have found somewhere we like in a different area and need to move for work relocation. Current lender has said they will give consent to let on current house.

What sort of deposit do lenders normally require to get a 2nd mortgage on a 2nd property?

Joint salary of 52k savings of 25k, 1 dependant. No credit cards, car loan of 11k

Current mortgage is 325 a month, next door has been let for years at 550-600 per month.

Is this even possible or will we have to rent till our house sells?

Thanks in advance for any advice

kingstreet

15% is about the norm.

As long as the rent covers the current mortgage payment, the let property will normally be ignored as "self-financing".

Running this past a good independent broker may be more sensible than trying to go direct.

chances

Many thanks kingstreet, would we need to have the property let before we apply? Or could we buy new place and when we move in then rent our current house out?

kingstreet

One or two lenders will insist on it being let and you having evidence of the rent before they will allow the let to be treated as self-financing, Nationwide for example.

However, other lenders are happy with a letter from an ARLA letting agent confirming the rental income prospects.

It's this kind of thing which made me suggest using a broker!