Buying another house

lausteph

Hi,
My husband owns his house outright. We want to move to a new area and keep the house he owns to rent out. We have no doubt it will rent due to the area.

How do we do this with a mortgage? We have a cash deposit of 10% for the house we are looking to buy and think we would need to release the equity in his home to buy the new house? what options do we have to achieve this? We are 35. Both are employed but I’m on maternity leave until September.

Thank you for any help

jamielutz1987

@lausteph

You could take out a BTL mortgage on the house, release some cash to add to your deposit and then use the enhanced deposit to get a mortgage on the new property.

Being on maternity leave shouldn't stop you from getting a mortgage, you may need a letter from the employer confirming your return to work hours and salary.

On the face of it, there doesn't appear to be anything hugely complicated about the scenario. A broker should be able to help you get both mortgages.

You will need to pay a 3% stamp duty surcharge on the new property, which can be refunded if you sell the husband's house within 3 years.

lausteph

Thank u, think speaking to a broker is the next step.

thanks again