mortgage affordability

sam2015_2

Hi All,
I need your help to decide what to do.


We've a property and looking into buy a second one.
current property mortgage out standing: 140K
property value: 220k
my family offered to give us 20k for deposit.


Maximum we can borrow is £230k for the second property assuming that the current one is going to be BLT. i.e the current property doesn't come into the mortgage affordably. We need to raise the rest and looking to borrow the absolute maximum.


Is it best to re-mortgage the current one to BLT and release the maximum equity from it to put towards the second house.
or remortgage the current one into another residential and release the maximum equity. Get the second one as BLT.


We are not fussed about which property we live in in the first two years or so. We'll eventually (in 2 to 3 years) want to live in the second house and either keep the first one and rent it out or sell it.


Any advise?

shortchanged_2

You won't be able to have a let to buy mortgage on your current property and continue to live in it. There will be strict rules that will want evidence that you will not be continuing to live there so that rules that option out.

sam2015_2

We will live in the one that has residential mortgage (either in current or new property) and let out the one on BLT.

Foxy-Stoat_3

Speak to a broker.

Ideally you want to have the first property on a BLT mortgage at 75% LTV taking out £25,000 cash of the equity - let that one out if the numbers stack up.

Second property on a standard mortgage at 80% LTV with your £25K + £20K that your family is going to gift you.