Borrow back

w00519772

I have made about £30K overpayments on my mortgage since I started IN 2014. I have discovered that my mortgage is not flexible meaning I cannot borrow back. Apparently there are two options when making an overpayment:

1) Keep it in a holding account. The mortgage balance is not reduced.
2) Reduce the mortgage balance.

If option one is chosen then you can borrow back. However, if option two is chosen then you cannot.

If I was offered another job in another city in the future then I would consider buying another property to live in (in the other city) and rent mine out using consent to let. However, I have discovered that my mortgage is not flexible meaning that I cannot borrow back. Therefore I will have to increase my savings. Do I have any other options? I realise I could probably borrow from parents or just save. Are there any other options?

eddddy

w00519772 wrote: »

I realise I could probably borrow from parents or just save. Are there any other options?

If you want to buy property, but don't have enough cash, the typical route would be to take out a mortgage. Obviously, the bank will want to check you and the property against their eligibility criteria.

Or perhaps you have friends, family, business associates etc, who trust you enough to lend you money (perhaps with a charge on the property).

Thrugelmir

w00519772 wrote: »

If I was offered another job in another city in the future then I would consider buying another property to live in (in the other city) and rent mine out using consent to let.

More likely be a BTL . As the move is permanent rather than temporary.

w00519772

Thrugelmir wrote: »

More likely be a BTL . As the move is permanent rather than temporary.

That is an interesting point. Bank of Ireland told me that I would be entitled to consent to let for four years. However, at the time of enquiry (when I was actually offered another job in another city, but declined) I said that I would be renting in the other city. I wander if buying means that I would not be entitled to consent to let.

G_M

w00519772 wrote: »

I have made about £30K overpayments on my mortgage since I started IN 2014. I have discovered that my mortgage is not flexible meaning I cannot borrow back.

If I was offered another job in another city in the future then I would consider buying another property to live in (in the other city) and rent mine out using consent to let.

1) take out a 2nd mortgage with your existing lender on your current property. Presumably you'll meet their lending criteria for at least £30K (unless you've changed jobs to a lower paid one)

2) pay off the existimg mortgage by taking out a new one for a larger amount with a new lender

3) leave the existing mortgage as is, and take out another on the new property you wish to buy

iantojones40

If you were offered another job in another city what's preventing you from selling your current house and buying a house in the city you're going to?

w00519772

iantojones40 wrote: »

If you were offered another job in another city what's preventing you from selling your current house and buying a house in the city you're going to?

I am aware of consent to let and porting as two options. I am just making sure that I am aware of all options. I have come across this webpage: https://www.bankofirelandmortgages.co.uk/fs/doc/wysiwyg/d0795a-ec-po-resi-further-loan-28-10-16.pdf. I believe this is: Further Advance (https://www.moneyadviceservice.org.uk/en/articles/increasing-your-mortgage-getting-a-further-advance). I have a few questions, which I asked Post Office on Friday. The operator did not know the answers and suggested calling back when more people are in the office. Can I use this to create a deposit for another house? Has anyone else done this?

w00519772

How would I search for a second residnetial mortgage? I have checked a few price comparison websites e.g. https://www.uswitch.com/mortgages/moving-home/?utf8=%E2%9C%93&sort_by=&mortgage_form_options%5Bproperty_value%5D=280%2C000&mortgage_form_options%5Bloan_amount%5D=160%2C000&mortgage_form_options%5Bmortgage_period%5D=25&mortgage_form_options%5Bmortgage_type%5D=any&mortgage_form_options%5Brepayment_method%5D=capital_repayment&mortgage_form_options%5Binitial_period%5D=-1&mortgage_form_options%5Brepayment_method%5D=capital_repayment. The categories appear to be: Re-Mortgaging; Buy to Let; First Time Buyer and Moving Home. It does not fall into any of these categories. Moving home seems to mean: selling your current property and buying another.

HSBC offer second residential mortgages so I know they exist.

Bob_Bank_Spanker_2

Do you really, really, want to be a landlord?

w00519772

Bob_Bank_Spanker wrote: »

Do you really, really, want to be a landlord?

Not sure. See my last comment here: https://forums.moneysavingexpert.com/discussion/5575107

Is that what you are talking about? Is my calculation correct?

foxy-stoat

If it was me, I would sell and buy another home in the new area. Unless you want to become a Landlord as a business.

Your calculations should that you would "earn" around £200 a month profit after tax - rough figures. Not worth it in my opinon as you can use your money in the property better buy selling it and buying a home to live in rather than paying a higher mortgage.