Buy a new house and keep the existing

ELnino

Hi,

I need some advice about my current accommodation situation. I want to buy a new house and keep my existing house which has 115k outstanding.

I want to buy a new house for 3 different reason.

1. Location of the house doesnt suit me anymore.
2. I have can have a life time tenant (unless something happens).
3. I have some cash.

One thing is for sure that I can rent the property out the second I leave the property to someone reliable without any headache and they can commit to however length contract for around £800.00 PCM. and I earn 30k through 2 jobs and have around 25k saving.

The problem I have is I will struggle to get a buy to let mortgage but since I am moving to the property I am going to buy, do I still have to get buy to let mortgage?? Whats the easiest and most affordable way of me getting a mortgage. or is it possible at all?

I can add a friend or someone as a guarantee too.

p.s I havent looked at any properties but I can buy what I can afford.

Thanks

davidmcn

What exactly do you mean by it has "115k in arrears"?

AdrianC

ELnino wrote: »

I want to buy a new house and keep my existing house which has 115k in arrears.

I assume you mean there is £115k of mortgage-lending outstanding. And how much equity?

I want to buy a new house for 3 different reason.

1. Location of the house doesnt suit me anymore.

OK.

2. I have can have a life time tenant (unless something happens).

What do you mean by that? This "something happens" - yes, that occurs frequently in life...

3. I have some cash.

<reads down> £25k. Lovely. And how much of that will you be using as a deposit on the place you're buying?

One thing is for sure that I can rent the property out the second I leave the property to someone reliable without any headache

Ooookay... I admire your optimism there...

and they can commit to however length contract

Riiight. Cancel that - it's not optimism, it's naivety. (I'm being kind).

for around £800.00 PCM

Will you be managing the let yourself or hiring an agent?
What are you allowing for voids, maintenance costs, insurance, gas safety, and all the other expenses?
How much of a buffer will you be keeping?

Let's do some sums off that and the value of the property, and we'll see what the yield is.

and I earn 30k through 2 jobs and have around 25k saving.

OK.

The problem I have is I will struggle to get a buy to let mortgage

Why?

but since I am moving to the property I am going to buy, do I still have to get buy to let mortgage??

You will need to remortgage the old property to a BtL mortgage, and get a residential mortgage on your home.

I can add a friend or someone as a guarantee too.

Mortgages don't have "guarantors" like renters may need to. The property is the security.

p.s I havent looked at any properties but I can buy what I can afford

Of course...

ELnino

what does changing the current mortgage to BTL involves?

ReadingTim

ELnino wrote: »

what does changing the current mortgage to BTL involves?

Asking the current mortgage provider, not randoms off the internet.

ELnino

if you cant be useful dont be usless!!

hazyjo

Are you on a fixed rate at the mo?


Remember, you're asking them, not telling them you want to change. They may not allow it.


When you say 'without headache', you'll still be the one s/he calls when the boiler dies, or if the roof leaks, etc. Plus you'll still have general ongoing maintenance with the property.

kinger101

ELnino wrote: »

if you cant be useful dont be usless!!

The same comment might be made about your amateurish attempts to become a landlord.

This forum isn't really the place for someone who can't be bothered to find out the basics using Google.