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Let to buy
GlasgowExpat
Posts: 39 Forumite
I currently rent in Glasgow. I have a house in London which is currently let out at £1200 p/month. There is about £250k equity on the property, 3 years left on the mortgage. I'm trying to work out how much I could borrow to purchase a flat in Glasgow.
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Comments
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if you withdraw equity from the house you have 2 choices :
a) keep existing lender. Assuming you are already on a BTL mortgage then they will require you to keep a minimum 25% equity in the house. If you are not on a BTL, ie you have remained on a residential mortgage then it depends on the terms of your consent to let and your income affordability
b) remortgage - would have to be a BTL and would have the same 25% minimum0 -
I currently have a residential mortgage with consent to let. Are there any calculators I can use? I also have £50k I could use as a deposit.0
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yes, its called using googleGlasgowExpat wrote: »I currently have a residential mortgage with consent to let. Are there any calculators I can use? I also have £50k I could use as a deposit.0 -
Thanks for your help (not)
All the calculators I can find are for buy to let not let to buy0 -
Yours is not a let-to-buy scenario, I don't think.
The key consideration for a new residential mortgage is how much you earn and the affordability of the proposed mortgage.
You can obviously fund the deposit from funds obtained by taking equity from your BTL, and this should improve the underlying affordability. Someone has already advised you on how much you could probably withdraw, although I am mindful that the yield in some parts of London is relatively small, so you may have to watch that (in terms of the rent covering the mortgage).
From what little I know of the Glasgow property market, I would have thought you could buy outright on funds released from London, plus your existing £50k. Size & location permitting.
There's also a thriving auction market, which as a cash buyer you might be able to use to save money on your purchase.
e.g. http://www.futurepropertyauctions.co.uk/
I've been to one of their auctions (didn't buy anything) and it all seemed very professionally run.0
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