buying house...not selling old house?

[Deleted User]

i am looking to move home...but i don't really want to sell the house i am in.

i would like to keep it for a few years...but it has the capitol i would use as a deposit on other house...bear with me.

so can i have a normal mortgage on my other house and change to buy to let mortgage on the one i am in and run the risk of not having a deposit or sell up whilst the market is good?

i will also mention i have no savings as on the verge of being debt free other than a mortgage.

i am so confused given the mixed messages in the market

any advice is greatly appretiated

[Deleted User]

can anyone help?

macaque_2

[quote=[Deleted User];discussion/570794]i am looking to move home...but i don't really want to sell the house i am in.

i would like to keep it for a few years...but it has the capitol i would use as a deposit on other house...bear with me.

so can i have a normal mortgage on my other house and change to buy to let mortgage on the one i am in and run the risk of not having a deposit or sell up whilst the market is good?

i will also mention i have no savings as on the verge of being debt free other than a mortgage.

i am so confused given the mixed messages in the market

any advice is greatly appretiated[/quote]

You start by saying that you want to turn your old home into a business/investment, then go onto say that you are so confused about mixed messages in the market. From this evidence, you would have to be barking mad to go ahead. When you make big decisions like this, you must have a well thought out business plan and you patently don't.

[Deleted User]

so what that gives you the right to post like i am stupid.....sorry i am not a financial wizz like yourself.....

hence why i asked for advice!

BettiePage

[quote=[Deleted User];6500688]so what that gives you the right to post like i am stupid.....sorry i am not a financial wizz like yourself.....

hence why i asked for advice![/quote]
Hence why he gave you advice.

[Deleted User]

ok well i will be plesant and thank you all for such wonderful advice!!

i will speak to an expert then, clearly this site is not as helpful as advertised!

and from the other posts everyone just digs at each other any way.

silvercar

Patience Stacey don't run away just yet.

I would suggest, finding out the likely rental for your current home. That should give you an indication of the max mortgage you can take on a BTL basis on your current home. The difference between the likely BTL mortgage and your current mortgage will be the money you could take out to act as the deposit on the property you want to buy.

Say your current home is worth 200k and you have a 50k mortgage. If the likely rental was £1,000 a month that would be £12,000 a year, but you need to allow for maintenance, letting costs and voids, so only assume you will have £10,000. At 6.5% interest only mortgage, that would service a mortgage of about £150,000. So you could in theory, change your current mortgage to a BTL interest only £150k mortgage, giving you a £100,000 deposit on your new place.

The figures are to illustrate the theory. With no savings you may want to be more cautious. Obviously your income needs to be able to support whatever mortgage over the £100k deposit you need on the new place.

Whether this is a good idea only you can decide, but I have described the mechanics if that is what you want to do.