Remortgaging to buy another property...good idea?

jax24

Looking for advice/any one been in a similar position. We are selling our house and it looks like our chain may have broken so we are looking in to any alternatives to see if we can still proceed with the house we have an offer on.
We have 130k left on our mortgage and the property is valued at 330k to 35Ok so we have 200k equity in it. The house we want to buy is 570k and we have the mortgage approval confirmation...we were using the 200k equity to put down on it and had the cash for stamp duty on top of separate to that. Now we are thinking because of the chain we would potentially look at keeping our current house and let it out and then using the equity and remortgage to buy the other house. I appreciate fees etc would be higher etc etc . Combined salaries are approx 170k . Anyone done this before and do you think it’s doable? We did want to have a rental property in the future so this may mean we just do it sooner than we thought.

Cakeguts

If you keep your current house and let it you will need to convert to a buy to let mortgage. For a buy to let mortgage you need a much higher amount of equity in the house before you can get the mortgage than you do with a normal residential mortgage so your figures may not add up.

hazyjo

So if you don't sell, you won't have the £200k equity. Would you earn enough to borrow another £200k on top of what you've agreed to borrow for the new house?

Don't forget extra stamp duty.

And you'd prob need 25% equity in the BTL. Does that all add up? (Too early for my brain to work and I've not had a cuppa yet lol.)

And, as above, BTL mortgage and costs associated with being a LL.

Not all houses suit being BTLs. What sort of property would be in demand in your area?

tbh I don't think it's a great idea, but others may disagree.

Houses come and go. Best thing to do is see if your vendors will give you a grace period in which to sell again. And make sure yours is priced realistically rather than optimistically.