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Buying BTL - borrowing against existing house
densol_2
Posts: 1,189 Forumite
Looking at buying a BTL
Me and bf been thinking about this for a while and saving for deposit. Houses here are expensive but tend to increase in value a lot.
I already own a house. Value now around £900k -£1 mil
Outstanding mortgage £255k - 23 year term left - till Im 75.
I am thinking of raising a chunk of deposit ( £100k) by remortgaging my house which is in my name only. My fixed rate runs out in July ( Nationwide ) so ideal time for remortgage / or stay with Nationwide and borrow more.
BTL - will be joint names but deed of trust setting out my share v his share etc as need to protect my assets. Bf earns £38k pa. Rent share will mainly be 80/20 to me to reflect my deposit which means that most of profit will fall inside my personal tax allowance. We will use an agent as I dont engage with people
I receive £5611 net per month work injury benefit payable till I die. I say net as its tax free so its equivalent to earning £100k gross plus a year if I was working. Its made up of some DWP disability benefits as they are deducted £ for £ as you only receive the money once and the rules are I have to apply for them regardless. All online calculators are asking for gross income - but mines the same net / gross and I really want a human to see the full picture if that makes sense? Do they ?
So I need to borrow a total of £355k against current home ( LTV still under 40%) Only have a PCP car loan - excellent credit rating - bank 35 years, this house 15 years, never missed a payment etc, empty credit card as used to collect airmiles then paid off.
BTL - around £300k - maybe a tweak less. Looking at 2 bed house in commuter belt for professional couple/sharer. Rent appears to go for around £1100 a month
Existing deposit saved I want to use is £50k plus the £100k. Ive got extra for expenses - so a 50% BTL loan/value approx.
I know I'll be stuffed with 3% stamp duty.
Was a landlord before and made a lot of money in price increase in BTL and main residence which enabled me to buy current home - so I know about the onerous obligations
Any thoughts / suggestions please before We Look for a mortgage broker etc ? Ive been procrastinating for ages over this and cant seem to get going with it lol
Me and bf been thinking about this for a while and saving for deposit. Houses here are expensive but tend to increase in value a lot.
I already own a house. Value now around £900k -£1 mil
Outstanding mortgage £255k - 23 year term left - till Im 75.
I am thinking of raising a chunk of deposit ( £100k) by remortgaging my house which is in my name only. My fixed rate runs out in July ( Nationwide ) so ideal time for remortgage / or stay with Nationwide and borrow more.
BTL - will be joint names but deed of trust setting out my share v his share etc as need to protect my assets. Bf earns £38k pa. Rent share will mainly be 80/20 to me to reflect my deposit which means that most of profit will fall inside my personal tax allowance. We will use an agent as I dont engage with people
I receive £5611 net per month work injury benefit payable till I die. I say net as its tax free so its equivalent to earning £100k gross plus a year if I was working. Its made up of some DWP disability benefits as they are deducted £ for £ as you only receive the money once and the rules are I have to apply for them regardless. All online calculators are asking for gross income - but mines the same net / gross and I really want a human to see the full picture if that makes sense? Do they ?
So I need to borrow a total of £355k against current home ( LTV still under 40%) Only have a PCP car loan - excellent credit rating - bank 35 years, this house 15 years, never missed a payment etc, empty credit card as used to collect airmiles then paid off.
BTL - around £300k - maybe a tweak less. Looking at 2 bed house in commuter belt for professional couple/sharer. Rent appears to go for around £1100 a month
Existing deposit saved I want to use is £50k plus the £100k. Ive got extra for expenses - so a 50% BTL loan/value approx.
I know I'll be stuffed with 3% stamp duty.
Was a landlord before and made a lot of money in price increase in BTL and main residence which enabled me to buy current home - so I know about the onerous obligations
Any thoughts / suggestions please before We Look for a mortgage broker etc ? Ive been procrastinating for ages over this and cant seem to get going with it lol
Stuck on the carousel in Disneyland's Fantasyland 
I live under a bridge in England
Been a member for ten years.
Retired in 2015 ( ill health ) Actuary for legal services.
I live under a bridge in England
Been a member for ten years.
Retired in 2015 ( ill health ) Actuary for legal services.
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