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  • FIRST POST
    • moncs
    • By moncs 17th Apr 18, 1:37 PM
    • 20Posts
    • 3Thanks
    moncs
    Buy to let question
    • #1
    • 17th Apr 18, 1:37 PM
    Buy to let question 17th Apr 18 at 1:37 PM
    Hi everyone,

    I hope I have the correct forum for this.

    We are currently looking to move to a new 4 bedroomed house early in 2019 worth 320,000

    Our current house is valued at 200,000 and our mortgage is around 70,000.


    This would give us around 130,000 deposit for the new place which is ideal, however I had thought about keeping our current home and renting it out but have no idea about the pros/cons. I am meeting up and a mortgage advisor next week, but thought I would ask here before so at least I have some knowledge.


    Could I remortgage my current home for 200,000 and still use the 130,000 equity as deposit on the new place?

    Obviously I understand I would have two mortgages and it would all depend on if the rental figures for my current home allows me to pay that mortgage.

    Any advice/suggestions would be very welcome.

    Thanks
    Scott
Page 1
    • Old Git
    • By Old Git 17th Apr 18, 6:30 PM
    • 4,306 Posts
    • 3,744 Thanks
    Old Git
    • #2
    • 17th Apr 18, 6:30 PM
    • #2
    • 17th Apr 18, 6:30 PM
    Your plan wont work .You need a BTL mortgage and a deposit.Your plan will have 100% mortgage.
    "Do not regret growing older, it's a privilege denied to many"
    • Thrugelmir
    • By Thrugelmir 17th Apr 18, 6:39 PM
    • 59,807 Posts
    • 53,152 Thanks
    Thrugelmir
    • #3
    • 17th Apr 18, 6:39 PM
    • #3
    • 17th Apr 18, 6:39 PM
    Quick answer is. Can you afford to service 390k of mortgage debt.

    Remember that second home stamp duty will set you back 15,600 as well.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • enthusiasticsaver
    • By enthusiasticsaver 17th Apr 18, 8:30 PM
    • 7,066 Posts
    • 15,311 Thanks
    enthusiasticsaver
    • #4
    • 17th Apr 18, 8:30 PM
    • #4
    • 17th Apr 18, 8:30 PM
    The only way you can realise your deposit is to sell your home. You wont get 100% mortgage so the best you can do is release equity from your current home up to 80% usually of the value and convert to buy to let mortgage. That is normally more expensive. There is no guarantee you will get tenants in quickly so servicing two mortgages would be expensive if there are gaps in tenancies or you get tenants who refuse to pay. You will also have to pay higher stamp duty on the house you are buying in 2019.
    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
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