Getting a second property, can we close off/transfer my existing mortgage balance?

Cornucopia

I'm not convinced. What the OP wants to do may be inadvisable, especially without previous Landlord experience, but sound as far as the figures go. (They have £300k equity, which is a big chunk of cash with which to start planning this kind of thing). A detailed discussion with a Broker will give a firmer indication though, especially if there is poor credit history. Many LTB/BTL products are Broker-only, so they would need to be involved sooner or later.

If the OP wanted to go with a BTL plan that was less ambitious, something like this might work, and also illustrates how a one mortgage scheme would typically work:-

- Keep old property, and increase mortgage to 75% LTV, releasing £200k, continuing to live in this property.

- Buy a smaller BTL property, specifically chosen for suitability in the local lettings market, buying it outright with the £200k. Fund the SDLT and fees from savings.

Without knowing the local market, relative rents, etc., it's difficult to be definitive, but as a general rule borrowing less means less risk.

heston2014

Thanks for all the responses. Really helpful.

I think we would go for a two mortgage option with a 75% LTV on LTB and up to 50% on second property. I have a few valuations for rental and current market value sale next week so that should give us a better idea of how much ours is worth. Our current income is 75k because I am currently on a short career break. Previously we had a joint income of 125k and I am hoping to start work before we begin the process as our current mortgage product expires in September.

Thanks again.

heston2014

Hi all

Just had a valuation on rental prices from a local estate agent and we can definitely get a minimum of £1800 and the estimate sale price would be 350k. We found some properties for around 250-295k for a potential second home so hopefully we would be able to manage both.

Is it possible to remortgage to borrow a deposit and save it until ready to purchase/get new mortgage on a second property?