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May I ask some advice from some buying/selling veterans?
goldlemontree
Posts: 75 Forumite
Hi, just looking for the best course of action please on a plan I have for my living situation.
I bought a house outright in 2015, I lived in it for a while but then moved out and it is now tenanted while I moved into my partner's rented place. However, we have been having issues for some time so I am looking to move out, however, rather than renting I would just like to buy a house for myself and move in there.
I don't want to live at the house I own anymore as the area has changed quite a bit since I bought it, but would like to release some money from it to put towards buying a new place.
In this scenario, do I need a buy to let mortgage AIP as well as a residential mortgage AIP in order to buy the new place since I would need money from my owned property in order to put into residential mortgage? Or would it be a let to buy where someone sorts them both out at the same time, though I've heard the rates for these are usually higher and there are also not many to choose from?
Barclays have given me an AIP for a residential mortgage, but it's based on getting the rest of the money out from the owned property so should I have asked them to give me another Buy to let loan AIP also? I won't necessarily go with them, but at the moment you need AIP to even view certain properties so thought I would just get one sorted through my bank.
I've spoken to two mortgage advisors and both have been a waste of time, so I just wanted to ask here so I can get an idea of the best approach:
Sorry if the post is a bit messy, I'm confused myself as you can tell but if you understand the above then advice would be appreciated, thanks.
I bought a house outright in 2015, I lived in it for a while but then moved out and it is now tenanted while I moved into my partner's rented place. However, we have been having issues for some time so I am looking to move out, however, rather than renting I would just like to buy a house for myself and move in there.
I don't want to live at the house I own anymore as the area has changed quite a bit since I bought it, but would like to release some money from it to put towards buying a new place.
In this scenario, do I need a buy to let mortgage AIP as well as a residential mortgage AIP in order to buy the new place since I would need money from my owned property in order to put into residential mortgage? Or would it be a let to buy where someone sorts them both out at the same time, though I've heard the rates for these are usually higher and there are also not many to choose from?
Barclays have given me an AIP for a residential mortgage, but it's based on getting the rest of the money out from the owned property so should I have asked them to give me another Buy to let loan AIP also? I won't necessarily go with them, but at the moment you need AIP to even view certain properties so thought I would just get one sorted through my bank.
I've spoken to two mortgage advisors and both have been a waste of time, so I just wanted to ask here so I can get an idea of the best approach:
- where to look to compare the best mortgage rates
- would you do Buy to let and residential at the same time and with same bank, or with 2 different banks if they had better rates, or a let to buy?
Sorry if the post is a bit messy, I'm confused myself as you can tell but if you understand the above then advice would be appreciated, thanks.
0
Comments
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Yes, you would mortgage the let property on a BtL mortgage. No point in getting an AiP - you just want to mortgage the place you already own...
That will release equity that you then put towards your home purchase, along with a normal residential mortgage.
Bear in mind you'll pay +3% SDLT on your home purchase. How profitable is the let? With a mortgage against it, will it be profitable enough to be worth the hassle?3 -
I get £725 PCM minus £87 for the management fees.0
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The fact that you do not own your own home may limit your BTL mortgage options.
Most require you to own your own residential home.0 -
Unless its changed you could get btl mortgages with Natwest without owning your own home a few years back.0
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Moving this to mortgage threads, thanks all0
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