How best to get mortgage advice? Buying a new home and letting current property

mattcafc

Hi all,

Really, I don't know where to go to find the correct advice on how to go about doing what I want to do.

This is the situation I am in.

We have 178k left on our current mortgage and have had our property valued at 280k.
We want to change this mortgage to a buy to let mortgage interest only.
We will then require a new mortgage for a new home. We would use some equity in our property (The 30k that should bring us to 75%) and we have 60k in savings also to put towards it.
The new home is currently valued at 399k, so I would imagine we would need to borrow around 350k and put down 50k.

Our current mortgage is with Virgin bank and has 6 months until the end of the agreement. We would need to pay 4k if we leave them before this ends.

Originally we was just going to sell our property and buy a new place and Virgin already gave us a mortgage in principle of 356k.

They are not the easiest to deal with though as we can't go into a store for an appointment and all has to be done over the phone and can get confusing after a few calls!

Do I need to get in touch with a mortgage advisor for this?
Will it cost me just to get them to look into the viability of this all?

Thanks

amnblog

You have a problem here.

VM wont let you keep the current product, and give you an extra £30,000.

Can you not wait 6 months and then be free to handle anything without the complication of early redemption penalties.

mattcafc

Hi, thanks for the reply.

Yes I can possibly wait, but I have already seen the property I wish to purchase.

We can leave Virgin early, but it will cost us 4k

mattcafc

Bump

Anyone know what we do to get advice for this.
Do we contact mortgage brokers and go from there? Will they charge us just to work out the visibility of this?

loveka

I am possibly looking at doing the same thing, although looking at all my options.

If you speak to a broker they don't charge you to check the viability of what you want to do.

They charge you when they find you a product. You are wanting a let to buy and I think a broker is probably the best option.

Google and give a few a call and see what they say. I will be doing the same if I find I can't port my mortgage.

ACG

Call up 1 or 2 mortgage brokers. Dont get loads working on it as you will get different reponses and it will just cause confusion and no doubt anxiety.

It is all feasible, but you there will be costs involved.
Are you also aware about the tax changes with BTLs? They are not the cash cow they once were and it is only getting worse.

Brokers do not normally charge for an initial chat.