Getting a second home

skyepark

We have an equity of roughly 90k on a property worth around 210k. We wish to rent out and remortgage for a new one. Our mortgage is 450 per month, we would receive over 125% over the mortgage payments in rental income, more nearer 200%. We will also have roughly 50k deposit for the new home. We both work and have an income of roughly 53k. Realistically what mortgage amount could? However another thing is that we just did a fixed interest rate product transfer would this mean we cant apply until that nears its end or just pay the early repayment fee instead. So many calculations to do I'm a bit lost. Im looking for further thoughts. thanks.

audigex

This post needs some additional detail: at the very least I'd imagine we need to know the current property's value and how much the mortgage costs you.

The answer won't be a simple number as this is a fairly complex case and incorporates a lot of factors, but someone may be able to suggest a likely range so you can at least see whether it's viable. In the long run, though, this is probably one for a broker.

amnblog

This will fall over or cost you unnecessary money unless you use a broker.

dimbo61

You may well need a broker for this.
You are starting a business and need to get this right from the start.
You could ask for Consent to Let from your current lender.
Would the £50,000 you have in savings be enough for a deposit on a new home.
You say you have £90K equity but how much is the property worth?
Most BTL mortgage lenders would use 5/6/7% for the Interest rate for the 125% rent to loan calculation but some even use 150%.
Changing to an Interest Only mortgage on the BTL maybe the best course of action.
Speak to a broker