2 mortgages possible?

m4tth3wb

Morning all,

Im currently looking at a new house to buy (to live in) at a value of around 300k. I'm considering letting the house I currently live in that has an outstanding mortgage of around 87k with a value of over 200k.

I'm a self employed sole trader with a net profit of 38,000.

What do you think my chances are of getting a second mortgage on the next house and what would you recommend the best options would be?

Thanks for any replies.

Matt

grumiofoundation

How much deposit do you have for the 2nd house (including the extra 9k SDLT : 12k LLT/LBTT)? 

K_S

m4tth3wb said:

Morning all,

Im currently looking at a new house to buy (to live in) at a value of around 300k. I'm considering letting the house I currently live in that has an outstanding mortgage of around 87k with a value of over 200k.

I'm a self employed sole trader with a net profit of 38,000.

What do you think my chances are of getting a second mortgage on the next house and what would you recommend the best options would be?

Thanks for any replies.

Matt

@m4tth3wb Looks like you are looking to let-to-buy. Very very roughly speaking (ignoring other non-mortgage costs associated with the purchase) -

- Depending on the rental figures stacking up, you may be able to release around 63k and go up to 150k (75% LTV) on the let property on a BTL remortgage.

- On your income, you may be able to borrow around 4.5 times income, so around 171k.

- That takes your total cash available to 234k, which leaves you with a shortfall of 66k to find if your budget is 300k for a new house.

m4tth3wb

K_S said:

m4tth3wb said:

Morning all,

Im currently looking at a new house to buy (to live in) at a value of around 300k. I'm considering letting the house I currently live in that has an outstanding mortgage of around 87k with a value of over 200k.

I'm a self employed sole trader with a net profit of 38,000.

What do you think my chances are of getting a second mortgage on the next house and what would you recommend the best options would be?

Thanks for any replies.

Matt

@m4tth3wb Looks like you are looking to let-to-buy. Very very roughly speaking (ignoring other non-mortgage costs associated with the purchase) -

- Depending on the rental figures stacking up, you may be able to release around 63k and go up to 150k (75% LTV) on the let property on a BTL remortgage.

- On your income, you may be able to borrow around 4.5 times income, so around 171k.

- That takes your total cash available to 234k, which leaves you with a shortfall of 66k to find if your budget is 300k for a new house.

Thanks for that.

I actually forgot to mention my wife will be on the second mortgage now who has a salary of 23600 gross income.


Both credit scores are the best they can be.

So you think it's possible then?

K_S

m4tth3wb said:

K_S said:

m4tth3wb said:

Morning all,

Im currently looking at a new house to buy (to live in) at a value of around 300k. I'm considering letting the house I currently live in that has an outstanding mortgage of around 87k with a value of over 200k.

I'm a self employed sole trader with a net profit of 38,000.

What do you think my chances are of getting a second mortgage on the next house and what would you recommend the best options would be?

Thanks for any replies.

Matt

@m4tth3wb Looks like you are looking to let-to-buy. Very very roughly speaking (ignoring other non-mortgage costs associated with the purchase) -

- Depending on the rental figures stacking up, you may be able to release around 63k and go up to 150k (75% LTV) on the let property on a BTL remortgage.

- On your income, you may be able to borrow around 4.5 times income, so around 171k.

- That takes your total cash available to 234k, which leaves you with a shortfall of 66k to find if your budget is 300k for a new house.

Thanks for that.

I actually forgot to mention my wife will be on the second mortgage now who has a salary of 23600 gross income.


Both credit scores are the best they can be.

So you think it's possible then?

@m4tth3wb With a combined income of just under 62k and no credit issues, and assuming the current property is either sold or converted into a BTL, you should be able to borrow around 275k upwards at mainstream rates with a 5%+ deposit. So you should be comfortably home for the 300k house purchase that you are aiming for.

Just to be clear, this is based on the limited info in your post of course, there may be other relevant information in the background that affects this figure.