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  • FIRST POST
    • tjhmoore
    • By tjhmoore 9th Jul 18, 1:30 PM
    • 1Posts
    • 0Thanks
    tjhmoore
    40k loan
    • #1
    • 9th Jul 18, 1:30 PM
    40k loan 9th Jul 18 at 1:30 PM
    Hi all,
    quick bit of background on the situation. My parents took out a loan for me which allowed me to purchase a house over 10 years, we have 4 years left to repay the loan but in terms of the house itself in theory its fully paid for. The house has a value of about 75k and a rental value of around 400 a month.

    Now I need to move for work, because there is only 4 years left on the loan on the current house I really dont want to sell it as If I rent it it almost pays for itself and then in 4 years its great extra income. But when I move I dont want to rent I want to buy, with stamp duty etc. I will need around 40k for the kind of house im looking at. My savings are pretty much 0 as im just about to pay for a wedding.

    So I wanted to get your opinions on the best way to get 40k, is it a loan, is it equity release? any opinions will be appreciated.
Page 1
    • garth549
    • By garth549 9th Jul 18, 1:36 PM
    • 205 Posts
    • 84 Thanks
    garth549
    • #2
    • 9th Jul 18, 1:36 PM
    • #2
    • 9th Jul 18, 1:36 PM
    Could you get a buy to let mortgage on your existing home?
    • foxy-stoat
    • By foxy-stoat 9th Jul 18, 2:44 PM
    • 2,184 Posts
    • 1,186 Thanks
    foxy-stoat
    • #3
    • 9th Jul 18, 2:44 PM
    • #3
    • 9th Jul 18, 2:44 PM
    Speak to a broker to see your options with taking out a BTL mortgage to release equity on your current property.

    Crunch the numbers though, as being a landlord can be more trouble and work than you first think, include for all costs including income tax on the rental payments.

    Any reason why you couldnt just sell the property, pay your parents back and buy your next property outright without the need to borrow any money or being a landlord and paying more house tax?
    • Tarambor
    • By Tarambor 9th Jul 18, 2:51 PM
    • 3,191 Posts
    • 2,311 Thanks
    Tarambor
    • #4
    • 9th Jul 18, 2:51 PM
    • #4
    • 9th Jul 18, 2:51 PM
    Ignore the above, you don't want a BTL, that's for when you are buying a property to rent out, not releasing equity in one you already have. What you want is a LET TO BUY mortgage on your current property. There will be fees of a couple of grand and interest rates are higher than for personal residential mortgages.
    • garth549
    • By garth549 11th Jul 18, 2:06 PM
    • 205 Posts
    • 84 Thanks
    garth549
    • #5
    • 11th Jul 18, 2:06 PM
    • #5
    • 11th Jul 18, 2:06 PM
    What's the difference? I always thought they were the same! !!!55357;!!!56853;
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