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Mortgage Advice
goonergeeza
Posts: 1 Newbie
Good Afternoon everyone,
Apologies for any errors here, this is my first post.I am writing this post as I really need some advice.I have a mortgage on a property that I bought in 2007, and this has been an interest only mortgage for quite a while now to keep the costs down. I lost both my parents in 2022, and we are awaiting the completion of probate before we know what we stand to inherit financially and what our IHT bill is. The main query I have is that I would have liked to have paid off my outstanding mortgage, and used to property as a form of deposit towards a second property, that way I could use the rental income towards the mortgage on my second property. I have since read that it isn’t possible to do this. So would it be possible to get a BTL mortgage on the property already mortgaged and a second mortgage for what I would like to buy next? I really don’t understand what can and can’t be done with regards to property, and I just don’t want to make a wrong decision here, that could impact me going forward.
Many Thanks all,
Apologies for any errors here, this is my first post.I am writing this post as I really need some advice.I have a mortgage on a property that I bought in 2007, and this has been an interest only mortgage for quite a while now to keep the costs down. I lost both my parents in 2022, and we are awaiting the completion of probate before we know what we stand to inherit financially and what our IHT bill is. The main query I have is that I would have liked to have paid off my outstanding mortgage, and used to property as a form of deposit towards a second property, that way I could use the rental income towards the mortgage on my second property. I have since read that it isn’t possible to do this. So would it be possible to get a BTL mortgage on the property already mortgaged and a second mortgage for what I would like to buy next? I really don’t understand what can and can’t be done with regards to property, and I just don’t want to make a wrong decision here, that could impact me going forward.
Many Thanks all,
0
Comments
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Yes. You can get a let to buy on the current property to repay the existing mortgage and to raise a "deposit" for the onward residential purchase subject to sufficient rental income and loan to value.
Lenders for the residential mortgage will typically ignore the cost of the let property provided it's self-financing. You can't usually use the rental income towards affordability for the residential mortgage until you have two years tax calculations to show the 'income from land and property'.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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