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Buying a new house and keeping my current
musheypeas
Posts: 97 Forumite
Hi a little advice please, I brought my flat through RTB 6 years ago, I have & 35k 9 years left. I'm looking at buying another house work around 350k and turn the flat into a BTL. The flat is worth around 270k, I want to take some equity out of the flat to use as a depisit on the house. Is this possible?
Starting this comping thing again wish me luck
0
Comments
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Can you afford to pay two mortgages with no rent coming in?
1 -
so what you are saying is:
- you do not have enough cash to afford the deposit on a 350k property
- you think that by getting a BTL mortgage on the flat you will be able to borrow money against that to use as the deposit on the 350k house
- the rental business has not even started yet and you have no track record as a LL and, by implication, no savings left to see that business through any bad patches of no rent
- you know that a BTL mortgage will be more expensive than a normal residential mortgage but that is your only option for getting the shortfall of cash you need to buy the home with. You just hope your lack of reserve finances will never be tested when the rent stops
doubtless a mortgage broker will be able to find you something, because they will get a commission from doing so, the real question is should you do it in the first place....?0 -
Yes it's possible with a Let to Buy mortgage. If you have no other savings you'll also have to free up another £18k to pay the SDLT.0
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