Remortgage to release funds for deposit?

Wiwer

We are considering the possibility of remortgaging our current house as a buy to let with a bigger mortgage and using the released cash as a deposit for a new house.

Is this advisable? Would a lender allow us to live in our house for a month after remortgaging while we look for a second house?

The plan would be to use a letting agent and for the income to cover the cost of the mortgage. The only financial pitfall I can see is if we had a period without tenants then we'd be paying two mortgages.

Any advice or suggestions are very much appreciated.

Foxy-Stoat_3

Depends on how much equity you have.

There is many pitfalls when becoming a Landlord, not just void or non-paying tenants.

Thrugelmir

Wiwer wrote: »

The only financial pitfall I can see is if we had a period without tenants then we'd be paying two mortgages.

.

Along with all the other costs that go with owning a property.

Higher interest rates.

Tenant causing damage.

Tenant in situ while not paying the rent.

Higher LTV on new property resulting in higher rate of interest.

Property will require maintenance over time. Not least kitchen and bathroom. Which if not addressed may impact resale value.

Crunch the numbers. Not always as attractive as it may first seem. Particularly once tax is taken into account.