Is this possible?

read20

Hi all,

Looking for some advice (I have emailed a couple of IFAs but hoping that some people here can help out).

I'm looking to buy a second property, which I am hoping to use as a buy to let. I currently have a mortgage on my first house which stands at £155000 with about 30 years remaining (I'm 25). I know that my house is worth in the region of £230-240000, so am I right in saying that I had around £75-85000 worth of equity in this property?

Would I be able to remortgage my property to release some of this equity to place on another property?

I have just got married about have outstanding loan amounts for this and other things that stand at 30-40000 so obviously I'm assuming that this is deducted from that amount. But is this possible and has anyone ever done this?

Thanks in advance

kingstreet

Your income/affordability will determine what you can borrow after the cost of your rather large unsecured credit portfolio is taken into account. That's monthly loan/HP payments and typically 5% of any card balance (yes, even on 0% cards).

Many lenders will allow you to take a further advance for the purchase of a BTL, where you will need 25% minimum deposit and where typically, the rent will need to be at least 125% of the monthly mortgage interest at an assumed rate of perhaps 6%.

Unlucky if with Nationwide as it will no longer lend for the deposit on a BTL.

You should speak to an independent broker about this.

_CC_

Income?

Likely price of BTL property?

read20

Mine and my wife's incomes together come to around £60,000.

Just trying to gain an idea whether an idea like this is possible. So not particular property values in mind, more a case of as much as can be afforded.

Pixie5740

Personally I wouldn't go turning £30k to £40k of unsecured debt into secured debt. I would focus on finding out exactly how much you owe and to whom and work at paying it off before even considering becoming a landlord.

Thrugelmir

read20 wrote: »

I have just got married about have outstanding loan amounts for this and other things that stand at 30-40000 so obviously I'm assuming that this is deducted from that amount. But is this possible and has anyone ever done this?

Thanks in advance

On a £60k income. That's a concerning level of unsecured debt from a lenders perspective. Hope the wedding was worth the cost. As that's some pay back with interest added on top. Suggest that you get to grips with the debt first. Speculating with property by leveraging yet further is a sure recipe for financial disaster.

read20

The debt that was acquired wasn't just for the wedding, this includes a couple of 0% balance transfers which I steadily pay off each month (these are the result of courses for my job etc) but I do agree that amount purely on a wedding would have been extravagant!

My partner actually works for Halifax which gives us greater leeway with regards to interest rates, hence why this option appealed initially.

I was more wondering if it was feesable, if anyone had done it, or if anyone had any advice.

Looking at the responses may not have been my smartest idea!!