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Advice please.

woodbutcher_2
woodbutcher_2 Posts: 747 Forumite
in House buying, renting & selling
I have a house which i own and intend to rent out.It has been valued at £140000 to £150000.I have just put in an offer for another house which has been accepted and i intend to live in the new house.I am seeing my bank manager on monday about raising the money for the new house using the equity and rental income from my first house.The problem i have is which is the best way to go about it?What sort of loans are the best way of doing this?Would like to meet the bank manager with a bit of knowledge instead of coming across as a business novice.Any thoughts or ideas would be appreciated.

Comments

  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Think you need an independent mortgage broker not the bank manager. The best you can likely borrow is the lower of 85% of the value or about whatever 80% of the rent gets you as an IO mortgage. I suspect the second figure and I doubt if that will be enough for what you want.
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • shades_2
    shades_2 Posts: 94 Forumite
    or alternativly you can go for a self certified mortgage usually at a higher apr but you get to fill in details without providing evidence as to how much you earn
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    shades wrote: »
    or alternativly you can go for a self certified mortgage usually at a higher apr but you get to fill in details without providing evidence as to how much you earn
    Er? He's going to rent it out, so he will need a BTL type mortgage or he won't have the mortgage holder's permission to rent it out. I don't think there are any self-cert BTLs. :confused:
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • nollag2006
    nollag2006 Posts: 2,638 Forumite
    You do need to speak to an IFA. I've used my guy for years for some very complex property transactions. PM me if you want contact details
  • woodbutcher_2
    woodbutcher_2 Posts: 747 Forumite
    Just to clarify.I already own the house i am going to rent out.What i need is to raise £116000 to buy another house which i want to live in.I have £140000 of equity in this place but it is too big for me.I was going to sell it,then buy somewhere else but the perfect house has come along before i got this on the market.If i dont move fast then the other house will go.It is in an area where houses sell pronto,so i got in quick,made an offer and it was accepted.That got me to thinking about renting this place out and i already have a tenant who is keen.I am self employed by the way.

    Thanks for the advice so far.
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    there are many many self-cert BTLs mortgage produces - whether they are as easy to get after thr Northern Rock hoo-haa is another matter - you need a whole market mortgage broker to giver you advice
This discussion has been closed.
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