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How to go about getting more than 1 mortgage??
4 Answers
I bought my own house 2years ago now (first time buyer), I had a mortgage of �66,500.
I am interested in keeping my current property and renting it out, but also buying another property for me to live in. The current cost per month for my mortgage is �400 so I could get the majority fo that through rent.
Problem is I dont want a buy to let mortgage as I dont have 15% to put down, is it possible for me to keep this fixed mortgage and take out another mortgage on this other property - possibly taking equity out on the current property to help bring down the mortgage or put as a deposit? (current value of my house is around �85k)
If this is not possible then how would i need to go about doing it?
I am a complete novice in this area so any info / feedback is appreciated. Thanks
I am interested in keeping my current property and renting it out, but also buying another property for me to live in. The current cost per month for my mortgage is �400 so I could get the majority fo that through rent.
Problem is I dont want a buy to let mortgage as I dont have 15% to put down, is it possible for me to keep this fixed mortgage and take out another mortgage on this other property - possibly taking equity out on the current property to help bring down the mortgage or put as a deposit? (current value of my house is around �85k)
If this is not possible then how would i need to go about doing it?
I am a complete novice in this area so any info / feedback is appreciated. Thanks
Answers
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At the most, you would be able to get around 10k out of your property, before fees.
I do not advise that you look to enter into investment properties with only this amount to invest. UK property prices have peaked for now and the credit industry is uncertain - poss leading to downward price readjustments in the coming months
Not a good time for you to invest in more property in my opinion
I do not advise that you look to enter into investment properties with only this amount to invest. UK property prices have peaked for now and the credit industry is uncertain - poss leading to downward price readjustments in the coming months
Not a good time for you to invest in more property in my opinion
When you take out the new mortgage they'll ask what outgoings you have and you'll tell them you have another mortgage which isnt a buy to let and which wont be fully covered by the rent (let alone the other expenses). Do you think they'd lend more to you on that basis?
Dont try and do this unless you have enough money to cover void periods when you'll have no rent coming in to pay the mortgage, repairs, maintenance, insurance etc etc
Dont try and do this unless you have enough money to cover void periods when you'll have no rent coming in to pay the mortgage, repairs, maintenance, insurance etc etc
It is possible. You have 21% equity in your current property (so you do have 15% to put down.)
If you borrowed up to 85% (some lenders will even go to 90% for a buy to let) then you would have a small deposit for your residential. This is less of an issue with your residence than with a buy to let.
In terms of whether it's a good idea - that's up to you. Most investments should be looked at over the long term.
If you borrowed up to 85% (some lenders will even go to 90% for a buy to let) then you would have a small deposit for your residential. This is less of an issue with your residence than with a buy to let.
In terms of whether it's a good idea - that's up to you. Most investments should be looked at over the long term.
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