House or buy to let if possible

[typer0612]

Hi all,

I am in two minds... Which way should I go?

Currently own a flat worth 220,000 with 155,000 mortgage outstanding. However it is a tad cramped with two kids.

Could I rent it out and use the rent as additional income to buy a house approx 300k? (What would I need in terms of income/cash)

Seeking advice on here before I take things further I.e. Moving back to parents to get equity I need to get a house!

[Sarnie]

You could rent it out and use any surplus to fund the mortgage of another property, but the new lender will not recognise that income stream when assessing your affordability for the new property....