Mortgage a owned property

Logan1941

Hi all,

I currently own a flat worth when last valued in march £71k. I completely own this property and have it rented out atm for £550pm, (I bought with compensation claim).

My current situation is I am 26 years old I have a 3 defaults all older than 3 years. I currently earn £14k a year plus my rental.

I would like to get some money out my flat £35k to be precise I have researched and I would need to mortgage the flat, I want to use this £35k to then fund a deposit for another property worth £125k. The new property is going to be a buy to let as well.

My question is has anyone any experience with this and can advise what the best way to tackle this would be?
I understand I will have 2 mortgages but I am wondering if it will be difficult because of my defaults and low income or will it be fine as it will be a BTL mortgage?

I think that's everything, thanks in advance for your help

Thrugelmir

Affordability will be the key. As you'll need to evidence the fact that you can afford to live and potentially service £125k of debt. If you have no rental income coming in.

Logan1941

Thanks for your reply.

Would it be easy to obtain the 2 mortgages at the same time? As I have seen a house and will need to mortgage my flat to get the £35k deposit then take a mortgage out on the house using the 35k deposit.

Caz3121

you would probably be best speaking to a broker as there are a couple of issues that will reduce the number of potential lenders (aside from the defaults)
1) minimum income requirements - many have a minimum income for BTL of £25k
2) BTL mortgage if you do not own residential property (it is not clear from your post where you live/plan to live)