Have a current mortgage, want to buy with a partner & rent existing home.

AdWolves123

Hi I'm after some advice on current mortgage situation.

I bought my house a few years ago and has been valued currently at 145000 by the bank and current debt is at 105000. I'm unclear on how remortgaging works...and would like to know how I could release equity in my home as if poss want to raise £15000?

If the above is straightforward enough, and I can match the deposit of my partner, how would I go about renting my property to my mother? As she currently rents so makes sense for her to move into mine....

If the first option doesnt work out I am due a compensation pay out next year due to being involved is a serious car accident. Which is going to pay within the region of the 15k...would I need to change my current mortgage to a BTL and how does this effect getting a mortgage with my girlfriend.

Any advice appreciated Adam:beer:

Thrugelmir

In no particular order. Some immediate thoughts.

1. Second home stamp duty will be payable
2. Letting to family will restrict potential lending options.
3. BTL may well require a 25% deposit / 75% LTV. Releasing £15k may not be possible.
4. Your total mortgage debt ( i.e. 2 properties) may impact affordability calculations.
5. Some lenders may not be happy with the source of your deposit i.e. borrowed (release of equity).