Buy to let question

moncs

Hi everyone,

I hope I have the correct forum for this.

We are currently looking to move to a new 4 bedroomed house early in 2019 worth £320,000

Our current house is valued at £200,000 and our mortgage is around £70,000.


This would give us around £130,000 deposit for the new place which is ideal, however I had thought about keeping our current home and renting it out but have no idea about the pros/cons. I am meeting up and a mortgage advisor next week, but thought I would ask here before so at least I have some knowledge.


Could I remortgage my current home for £200,000 and still use the £130,000 equity as deposit on the new place?

Obviously I understand I would have two mortgages and it would all depend on if the rental figures for my current home allows me to pay that mortgage.

Any advice/suggestions would be very welcome.

Thanks
Scott

Old_Git

Your plan wont work .You need a BTL mortgage and a deposit.Your plan will have 100% mortgage.

Thrugelmir

Quick answer is. Can you afford to service £390k of mortgage debt.

Remember that second home stamp duty will set you back £15,600 as well.

enthusiasticsaver

The only way you can realise your deposit is to sell your home. You wont get 100% mortgage so the best you can do is release equity from your current home up to 80% usually of the value and convert to buy to let mortgage. That is normally more expensive. There is no guarantee you will get tenants in quickly so servicing two mortgages would be expensive if there are gaps in tenancies or you get tenants who refuse to pay. You will also have to pay higher stamp duty on the house you are buying in 2019.