Let to buy confusion

fogma

Hi, any advice would be really appreciated.

We bought a house 2 years ago for £107,500 on a 90% LTV but stupidly on a 7 year fix with Halifax at 4.69%.

We currently have £92,500 left on the mortgage but the value of the property is now around £140,000-£150,000. The property would rent out for £600-£700 PCM and our monthly repayments are £547.

We're looking at upsizing and moving house to somewhere worth around £180-£220k but think the value of our current house will only increase and are looking at the option of renting it out rather than selling.

I don't know if Halifax would convert our current mortgage to a buy to let before the end of our fix, or whether we should port the current mortgage and get a new buy to let mortgage or if the whole thing isn't feasible at all?

Thanks

Thrugelmir

Releasing the equity in your current home may give you more options depending on the deposit you intend to put down on the new property.

The property would rent out for £600-£700 PCM and our monthly repayments are £547.

Only the interest element is tax deductible. Any profit you make is subject to tax.

but think the value of our current house will only increase

Do you want to run a business and are you prepared for the fact that you might meet the tenant from hell. Letting while potentially rewarding does come with risks. There's no guarantees.

amnblog

Tight on affordability to let the property out.

There should be something that can be done if you have the correct advice.