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Remortgage - help please
Teddi86
Posts: 5 Forumite
Looking for some advice please.
Have 2 properties with no mortgages: A and B.
A: House is worth about £850,000, rented out for £30,000 per year.
B: I am living here, worth about £250,000-£300,000.
I want to release some money from A to pay for another property to let out. I am looking at places in the region of £500,000. I was looking to get a re-mortgage of £400,000 and use this as a deposit, then get a second mortgage on the new property of about £100,000. I think that my numbers would meet the affordability criteria of rent covering 150% of the mortgage.
I have about £50,000 in the bank to cover fees and stamp duty etc.
So I have equity. Problem is my income is quite low otherwise, only £17,000. I don't expect this to increase much within the next 2 years. This really limits my options.
I spoke to a broker briefly and was told straight away that I wouldn't have a chance, is this true for all lenders? They said that most lenders require a minimum earned income of £25,000.
I feel a bit stuck. I feel that with so much money locked in property I should make better use of it. I don't want to sell either of the properties at the moment.
Wondering where to go from here. Should I try another broker, try high street lenders, or just give up..
Have 2 properties with no mortgages: A and B.
A: House is worth about £850,000, rented out for £30,000 per year.
B: I am living here, worth about £250,000-£300,000.
I want to release some money from A to pay for another property to let out. I am looking at places in the region of £500,000. I was looking to get a re-mortgage of £400,000 and use this as a deposit, then get a second mortgage on the new property of about £100,000. I think that my numbers would meet the affordability criteria of rent covering 150% of the mortgage.
I have about £50,000 in the bank to cover fees and stamp duty etc.
So I have equity. Problem is my income is quite low otherwise, only £17,000. I don't expect this to increase much within the next 2 years. This really limits my options.
I spoke to a broker briefly and was told straight away that I wouldn't have a chance, is this true for all lenders? They said that most lenders require a minimum earned income of £25,000.
I feel a bit stuck. I feel that with so much money locked in property I should make better use of it. I don't want to sell either of the properties at the moment.
Wondering where to go from here. Should I try another broker, try high street lenders, or just give up..
0
Comments
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You should be able to get a BTL mortgage for the property you already let out as you are a home owner and an experienced landlord.0
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