Second mortgage/remortgage

klaxhu

Hi all,

I am toying with the idea of moving out of London so would like to rent my house and remortgage to buy something outside.

Situations is as follows:
currently own 1x 5 bed house in London, bought for 250k, still 150k mortgage left on in, house now worth around 550k.
Can I take the equity (total or partial)and use it with other savings (around 80k) as deposit and apply for another mortgage?

I would then move to this "new" house with the "old" one becoming a buy to let. Looking at properties at around £800k, and the math in my head would be: ideally a 80% LTV on the new house to keep deposit down, £160k(borrowing £640k) deposit with a £2800 ish monthly payment on 25 years + whatever the buy to let would be (on the current mortgage I am paying £700/month and it will probably go up to £1500ish which is easily covered by rent).

Could anyone confirm if this was possible?
[I've checked with my income and borrowing 600k if I have 200k is no problem]

Are there any limitations on the LTV on the buy to let on my "old" house that will limit on how much I can take out as equity? Who would be the best people to talk about this? estate agents or my current mortgage provider or perhaps a new mortgage provider?

ACG

Assuming the figures stack up then yes.
In theory you could apply for a Buy to let (BTL) mortgage on your current place, up to around 75-80% LTV so £410-440k.

After you pay off your current mortgage, that would give you £260-290k + your £80k.

So £800k - £260k - £50k (I have put £50k instead of £80k as you would need money for stamp duty etc) meaning you would then need a new residential mortgage for £490k.

As a general rule of thumb you can lend around 4.5x your income, so you would need an income of around £110k.

klaxhu

ACG wrote: »

Assuming the figures stack up then yes.
In theory you could apply for a Buy to let (BTL) mortgage on your current place, up to around 75-80% LTV so £410-440k.

After you pay off your current mortgage, that would give you £260-290k + your £80k.

So £800k - £260k - £50k (I have put £50k instead of £80k as you would need money for stamp duty etc) meaning you would then need a new residential mortgage for £490k.

As a general rule of thumb you can lend around 4.5x your income, so you would need an income of around £110k.

thank you!
income not an issue...so I will check with my bank to see what options they will offer me. If I feel stuck, will get independent advice from a broker. you offer any services? can I PM you?