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    • moncs
    • By moncs 17th Apr 18, 1:37 PM
    • 21Posts
    • 3Thanks
    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.

Page 1
    • Old Git
    • By Old Git 17th Apr 18, 6:30 PM
    • 4,351 Posts
    • 3,786 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
    • 62,094 Posts
    • 55,271 Thanks
    • #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.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • enthusiasticsaver
    • By enthusiasticsaver 17th Apr 18, 8:30 PM
    • 7,973 Posts
    • 17,935 Thanks
    • #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.
    Early retired in December 2017

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