Advice needing

Ting_92

hi all, I am a leaseholder of an one bed flat. I have been looking to buy another property and rent the flat out…how should I get the process started and how much deposit for the second home should I have?

Thank you

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6652948/advice-needing

Are you going to need a mortgage? If you are then you'll typically need a 25% deposit and clearly you will get better interest rates if it's more than that.

Ting_92

https://forums.moneysavingexpert.com/discussion/comment/81862117#Comment_81862117

yeah I will need a new mortgage, can I not my first property as my asset?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81862132#Comment_81862132

Do you have a mortgage on your current property? Are you talking about extending the current mortgage to release funds or getting a second mortgage secured on it? Second mortgages have much higher interest rates as they are a second ranking debt so they only get what's left after the first mortgage has taken their share if the worst happens.

Ting_92

https://forums.moneysavingexpert.com/discussion/comment/81862146#Comment_81862146

I do have a mortgage on my current property unfortunately…I am not selling it because it’s gone down value… what should I do to rent it out and buy a new property? If I can

MyRealNameToo

Or save up until you have a deposit appropriate for buying a BTL property?

user1977

I am not selling it because it’s gone down value

That's not a particularly good reason to decide to start a letting business instead. Why can't you just sell it?

Ting_92

https://forums.moneysavingexpert.com/discussion/comment/81862173#Comment_81862173

because the value of the property has gone down… I don’t think it’s a good idea selling it, or is it?

Ting_92

I don’t know…not an expert that’s why I need advice

user1977

https://forums.moneysavingexpert.com/discussion/comment/81862185#Comment_81862185

Why is that a reason not to sell it?

JM68

You won't really be able to get any meaningful advice without more facts e.g. what is your current flat worth, what is the oustanding mortgage balance, what is your income (inc with any partner if buying jointly).