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Mortgage to let a house
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juliekn
Posts: 4 Newbie
Looking for advice about mortgaging a house which I already own 50% of. I have inherited half of this house and would like to buy the other 50% plus a little bit to renovate it.
However, the house is in another part of the country to where I live and I am not ready to move there at the moment, as I have secure employment where I live.
I was thinking of renting it out for a few years until I retire (in 6 years). The house I live in is rented. Does anyone know if anyone would be willing to give me a mortgage (preferable a 10 year mortgage) in these circumstances? I couldn't afford to sell in and buy a place in my area as it is too expensive.
However, the house is in another part of the country to where I live and I am not ready to move there at the moment, as I have secure employment where I live.
I was thinking of renting it out for a few years until I retire (in 6 years). The house I live in is rented. Does anyone know if anyone would be willing to give me a mortgage (preferable a 10 year mortgage) in these circumstances? I couldn't afford to sell in and buy a place in my area as it is too expensive.
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Comments
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Looking for advice about mortgaging a house which I already own 50% of. I have inherited half of this house and would like to buy the other 50% plus a little bit to renovate it.
However, the house is in another part of the country to where I live and I am not ready to move there at the moment, as I have secure employment where I live.
I was thinking of renting it out for a few years until I retire (in 6 years). The house I live in is rented. Does anyone know if anyone would be willing to give me a mortgage (preferable a 10 year mortgage) in these circumstances? I couldn't afford to sell in and buy a place in my area as it is too expensive.
You really need to be speaking face to face with an expert.
A mortgage broker can help you find an appropriate mortgage for you.
Some lenders require you to own the property you live in and some don't mind if you don't own any property at all.
You could take out a BTL mortgage to buy the other half of the house. The amount you can borrow would be based on the expected rent the property could achieve.
As you don't own a property some lenders require you to earn £25,000 or more so if you don't you will definitely need some help sourcing the funding.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
As a general rule of thumb BTL mortgages have a maximum LTV of 75% (which it sounds as though won't be an issue for you) and require the rent payments to be at least 125% of the mortgage repayments although I heard recently that some lenders require rent to be 145% of the mortgage repayments.
I'm not sure if the property is currently let out or not but you might find G_M's guide for Landlords and Tenants in England & Wales useful.0 -
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