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2nd mortgage/ remortgage for deposit?

Hi,

I purchased a property for 170k with a 33k deposit and the expected rental income was £950PCM. I spent 30k renovating it and it’s now being rented out for £1500PCM. 

Can I lend any anymore for an onward purchase towards deposit? TMW is the lender. 

Many thanks!

Comments

  • GrumpyDil
    GrumpyDil Posts: 1,900 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper Combo Breaker
    Possibly. You'll have to ask TMW if they will lend you more based on the numbers.

    Actually I think TMW are broker only, if that's correct you'll have to ask your broker. 
  • El_Torro
    El_Torro Posts: 1,708 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    I think the limiting factor here will be how much equity you have in the property. Do you have a repayment mortgage or an interest only mortgage? How much is the property worth now?

    When you bought the property you had just under 20% deposit. This is already quite tight I think. 
  • I think it would have increased only around 40k in value, so I’m 
    guessing I cam only lend an extra 20k ish. If it was based on rental income then maybe more but not entirely sure how it works. 

    Many thanks!
  • user1977
    user1977 Posts: 16,467 Forumite
    10,000 Posts Sixth Anniversary Photogenic Name Dropper
    You borrow, they lend.
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