Remortgaging property

ebam_uk

Hi

I have a property I have been renting out (consent to lease) ( live with my wife in our own property)but now on standard variable rate of > 4% I feel its expensive mortgage wise since I do not have a tenant in the property currently.

I have approx £25,000 in credit cards ( currently all at 0%).

Can I get a remortgage on the property say assuming I pass credit checks ( i realise I am holding unsecured debt), could I release equity ( I know this is a longer shot), all whilst the property is empty no tenants.

I know it might make sense to wait til I get tenants before refinancing, but say i get offered < 2% buy to let mortgage with interest only my repayments would be significantly lower.

I may ask my mortgage advisor but I wondered if people have experience with this situation, if its possible I may just sell the property as no point having a property if it is costing too much cashflow wise...

Socajam

Why is the property empty and for how long?
Does it need repairs and how soon would you be able to let it?
What is the mortgage on the property? If let what sort of rent are you looking at?
I would seriously sit down and do some sums on what I could let the property for, how much is left over and tackle the credit cards starting with the smallest amount first.
At the same time you could also find out what are your changes on remortgaging.

ebam_uk

Socajam wrote: »

Why is the property empty and for how long?
Does it need repairs and how soon would you be able to let it?
What is the mortgage on the property? If let what sort of rent are you looking at?
I would seriously sit down and do some sums on what I could let the property for, how much is left over and tackle the credit cards starting with the smallest amount first.
At the same time you could also find out what are your changes on remortgaging.

been empty for a few days last tenants moved out ( they were returning to their home country as they were students.

It is in a "lettable condition", was left in a good state.

I am looking for £600 rent, I could ( maybe should have accepted the DSS guy that is looking), but his reference wasn't going through until he gives me a reference I won't accept him as I have never rented to DSS before.

Mortgage is £108,000, bought it for £168,000. Rent is £600 although in the past in hotter market has been going for £1,000+


TBH, I am wondering if I am likely to be accepted for a straight remortgage based on my current scenario.

csgohan4

that debt will hit your affordability and Consent to lets may not last indefinitely, they will likely put you on a BTL mortgage which is more expensive.

get a broker to see your options, hit the debt free wannabee forum to hit that debt

ebam_uk

csgohan4 wrote: »

that debt will hit your affordability and Consent to lets may not last indefinitely, they will likely put you on a BTL mortgage which is more expensive.

get a broker to see your options, hit the debt free wannabee forum to hit that debt

Current mortgage provider has a rule ( halifax) if you had a residential mortgage and lived in the property they won't automatically port to a buy to let mortgage.

So it might be better to temporarily let out the property, look to sell in the future bank like £50,000 - £100,000, use some of the equity cash to pay off unsecured debt.

Maybe after making more investments, ISA's, Pensions, SIPPs, Stockmarket, P2P lending to get income streams, I might consider buy to let when my cash flow can comfortably cash flow 6 months of an empty property and look to build a property portfolio then.

As its harder when affordability hits, cash flow hits, to ride out property investments... rather than go bankrupt and not be able to refinance to better rates...