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Remortgage current house to BTL and buy a new house with residential mortgage at the same time?
missymoo81
Posts: 8,049 Forumite
Advice needed please, we are hoping to remortgage our current property to a BTL to rent out, then use some of the equity to buy another house to live in which will need a (rather large) residential mortgage for. Can this be done at the same time? Also where is best to find out if we can actually afford both?
Thanks so much
Thanks so much
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Comments
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Should be able to do both together. For affordability, the BTL should wash its own hands, so look at the amount you would be given for a BTL on its own, based on rent and property value and then base the residential mortgage on income. If you can show the BTL is profitable on its own it shouldn’t impact the rest mortgage.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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If things are tight don’t forget your new house will cost an additional 3% in SDLT, and do some thorough research on what being a landlord entails before committing to this plan.1
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Yes, you can do this but it is very easy to trip up. On no account try to sort this yourself.
Use an experienced Broker, tell them you want to do a Let to Buy. If they seems at all unsure, don't use therm.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You need to crunch the numbers, i.e, fully cost the exercise. Often there's much that gets overlooked. In the head appears an easy way to make money.missymoo81 said:Also where is best to find out if we can actually afford both?0 -
Thank you so much0
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