Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Retirement planner
    • By Retirement planner 13th Mar 18, 5:13 PM
    • 3Posts
    • 0Thanks
    Retirement planner
    Buying second property
    • #1
    • 13th Mar 18, 5:13 PM
    Buying second property 13th Mar 18 at 5:13 PM
    We have our own mortgage free home value 340k. We have viewed a property in our area which will be perfect for retirement 250k but not for the next few years as waiting for the last dependant to fly the nest. Due to location it will make a perfect holiday let. Do we raise the money on our current home or do we need a buy to let mortgage? We know we can only get mortgage for length of time we intend to remain in work. As we have some savings, would paying off the car loan make us more attractive to lenders these days, or better off paying off interest free credit card? Or reducing the amount we want to borrow? We intend to sell the family home in approx 5-7 years.
    Thanks for any advice
Page 1
    • kingstreet
    • By kingstreet 13th Mar 18, 5:42 PM
    • 33,381 Posts
    • 18,068 Thanks
    kingstreet
    • #2
    • 13th Mar 18, 5:42 PM
    • #2
    • 13th Mar 18, 5:42 PM
    Where is the deposit coming from?
    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.
    • Thrugelmir
    • By Thrugelmir 13th Mar 18, 6:54 PM
    • 58,490 Posts
    • 51,853 Thanks
    Thrugelmir
    • #3
    • 13th Mar 18, 6:54 PM
    • #3
    • 13th Mar 18, 6:54 PM
    As we have some savings, would paying off the car loan make us more attractive to lenders these days, or better off paying off interest free credit card?
    Originally posted by Retirement planner
    Your financial circumstances will determine the amount that you'll be able to borrow.

    You do realise that the stamp duty is going to be 10k or thereabouts on the purchase.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Retirement planner
    • By Retirement planner 13th Mar 18, 6:55 PM
    • 3 Posts
    • 0 Thanks
    Retirement planner
    • #4
    • 13th Mar 18, 6:55 PM
    • #4
    • 13th Mar 18, 6:55 PM
    Deposit for the property or paying off loans from savings
    • Retirement planner
    • By Retirement planner 13th Mar 18, 7:11 PM
    • 3 Posts
    • 0 Thanks
    Retirement planner
    • #5
    • 13th Mar 18, 7:11 PM
    • #5
    • 13th Mar 18, 7:11 PM
    Yes thanks we know the stamp duty Grrr!
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 18, 10:06 PM
    • 6,400 Posts
    • 13,163 Thanks
    enthusiasticsaver
    • #6
    • 13th Mar 18, 10:06 PM
    • #6
    • 13th Mar 18, 10:06 PM
    Not sure how old you are but many lenders wont lend past 70. This may make a 250k mortgage unaffordable if over a short period. If you go for a BTL mortgage on the new property you will need to put down a 20% deposit usually and they are more expensive than residential mortgages.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • loveka
    • By loveka 14th Mar 18, 1:10 PM
    • 389 Posts
    • 362 Thanks
    loveka
    • #7
    • 14th Mar 18, 1:10 PM
    • #7
    • 14th Mar 18, 1:10 PM
    You will need a holiday let mortgage. A buy to let mortgage doesn't allow short term lets.

    The good news is a holiday let mortgage will give you a term up until you are 80, as the lending is based on the income the holiday let brings in.

    Look at Cumberland and Principality. Leeds do them, but they have to be established holiday lets unless they meet the buy to let criteria on rental income
    .
    I have done the same. I plan to sell my main home in 3-5 years time and pay off my holiday let mortgage.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

452Posts Today

5,531Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin