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Advice re buy to let
spikey54
Posts: 3 Newbie
We are thinking of moving to a new property costing £365k. Instead of selling our existing house we would like to keep it and rent it out to cover the mortgage on the new place as we may move back in the future. Our current house is worth c£600k, our remaining mortgage is £47k. Rental income in the area for properties similar to ours is between £1300 and £2000 pcm. We have about £70k cash savings. Any advice on the best way forward greatly appreciated.
0
Comments
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You looking for advice on letting?
* New landlords: advice, information & links
On financing? Independant mortgage broker.
On Tax?
On .....?0 -
Really on the best way to configure the financing, have no previous experience of this sort of thing.0
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So you need to raise about £300K+ to buy the new property..... new property costing £365k.
current house is worth c£600k
remaining mortgage is £47k.
Rental income is between £1300 and £2000 pcm.
We have about £70k cash savings.
Will you pass affordability tests? Bang your income into an online calculator.
You'll also need to either switch your current mortgage to BTL, or pay it off by raising another £47K on your new mortgage.
As I said in my first response, go and see an independant mortgage broker.0 -
Extra 3% stamp duty.
Poor yield
Higher tax on BTL
Large mortgage on second property to get very poor return on rental0
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