Is this even possible? Let-to-buy and remortgaging...

bees_alive

I suspect this is wishful thinking and would very much appreciate some wisdom (long time reader on these boards).
We've seen a house we love, which has just had a massive reduction for a quick sale. Certain it will go quickly now. There is nothing in our area with this space etc anywhere near this price. Our house is on the market but nothing much happening at the moment.
We have a lot of equity in our current house plus own a buy to let with equity.
We are considering doing a 'let-to-buy' on our current home as well as remortgaging our buy to let, which would raise the deposit we need for the new house.
However, I imagine lenders would have huge nervousness about people applying for effectively 3 mortgages at the same time (new property mortgage, remortgage on buy to let, plus larger mortgage on our current home)? Would this even be a possibility worth exploring? Or am I just clutching at straws here (I suspect so!)?
Incase its relevant we have great credit histories, fairly good salaries etc. Oh, and I have allowed for the extra stamp duty in my calculations! Plus leaving a significant buffer in our savings for void periods in the 2 potential rentals.

kingstreet

Two mortgages.

You will remortgage your current home, raising the funds to repay the current mortgage and for your deposit, plus the mortgage for the new purchase.

Doing one of these at the moment. Takes plenty of concentration and attention to detail.

First off, get a letting agent to estimate the rental income potential of your current property in writing as you'll need this to have the lender on the new purchase ignore the let property/mortgage.

You'll also have to take the property off the market before you start the remortgage process.

heston2014

Going through this at the moment, Let to buy (remortgage) on our current property to raise funds for deposit for onward purchase. Two mortgages essentially. Had some challenges with LTB as property has deck access and ex council which limits lenders but our broker managed to get find us suitable lender for both mortgages. Speak to a broker who can help you find lenders. We got local estate agents to estimate both sale and rental value of our current property to give us an idea of equity we can release and remortgage amount.

All the best.

bees_alive

Thanks so much for your replies.

Two mortgages.

You will remortgage your current home, raising the funds to repay the current mortgage and for your deposit, plus the mortgage for the new purchase.

Its these 2, plus increasing the mortgage we already have on an additional buy-to-let that we have.

I think this is what's worrying me - would lenders see all these credit applications and run a mile?!

Really interesting to hear the points made so far - thank you for taking the time.

amnblog

No, the right lenders will be ok with this.

kingstreet

bees_alive wrote: »

Thanks so much for your replies.

Its these 2, plus increasing the mortgage we already have on an additional buy-to-let that we have.

I think this is what's worrying me - would lenders see all these credit applications and run a mile?!

Really interesting to hear the points made so far - thank you for taking the time.

Sorry, I misread.

Two capital raising remortgages and a purchase?

Blimey, I've never done a three-in-one before. As amn said, shouldn't be an issue as long as all the figures stack up.

Thrugelmir

Worth exploring. Though it's really a question of how the numbers stack up. Along with the fact that time might be against you. If time is of the essence. Not just stamp duty but other costs might add up to a considerable sum as well.

silvercar

We did something similar a few years ago without a problem.

We had the mortgages with different lenders and didn't need to declare to either lender the other borrowing (we did check but both said they didn't need to know).

bees_alive

Thanks everyone. Sounds like its not totally ridiculous and potentially worth exploring - and so I've contacted a mortgage broker to get some specific advice and see if the numbers do actually work at all!