Can we do this? (mortgages, buy to let)
Discussion
Hi everyone,
Me and the other half currently live in an apartment that is fortunately paid off, and we have recently seen another place that we really like and want to get hold of it. However we do not have a deposit and do not wish to sell the place we are currently in. Am I way off in thinking we could do the following?
Remortgage where we are now and release around 35k, then use that towards a mortgage on the place we want and then renting out where we are living now. Is that a viable option or are we dreaming? More info if you want, our place is around 110k, the place we want is 126k, the place we want is currently let and we would consider purchasing it as a buy to let until the tenant wanted to leave if that was an option available to us financially. The OH is part time and self employed, I am full time, combined income between 50-55k.
Any help appreciated, cheers
Me and the other half currently live in an apartment that is fortunately paid off, and we have recently seen another place that we really like and want to get hold of it. However we do not have a deposit and do not wish to sell the place we are currently in. Am I way off in thinking we could do the following?
Remortgage where we are now and release around 35k, then use that towards a mortgage on the place we want and then renting out where we are living now. Is that a viable option or are we dreaming? More info if you want, our place is around 110k, the place we want is 126k, the place we want is currently let and we would consider purchasing it as a buy to let until the tenant wanted to leave if that was an option available to us financially. The OH is part time and self employed, I am full time, combined income between 50-55k.
Any help appreciated, cheers
DomBertone said:
Hi everyone,
Me and the other half currently live in an apartment that is fortunately paid off, and we have recently seen another place that we really like and want to get hold of it. However we do not have a deposit and do not wish to sell the place we are currently in. Am I way off in thinking we could do the following?
Remortgage where we are now and release around 35k, then use that towards a mortgage on the place we want and then renting out where we are living now. Is that a viable option or are we dreaming? More info if you want, our place is around 110k, the place we want is 126k, the place we want is currently let and we would consider purchasing it as a buy to let until the tenant wanted to leave if that was an option available to us financially. The OH is part time and self employed, I am full time, combined income between 50-55k.
Any help appreciated, cheers
Yep, perfectly feasible, we do this for clients all the time! Me and the other half currently live in an apartment that is fortunately paid off, and we have recently seen another place that we really like and want to get hold of it. However we do not have a deposit and do not wish to sell the place we are currently in. Am I way off in thinking we could do the following?
Remortgage where we are now and release around 35k, then use that towards a mortgage on the place we want and then renting out where we are living now. Is that a viable option or are we dreaming? More info if you want, our place is around 110k, the place we want is 126k, the place we want is currently let and we would consider purchasing it as a buy to let until the tenant wanted to leave if that was an option available to us financially. The OH is part time and self employed, I am full time, combined income between 50-55k.
Any help appreciated, cheers
Sarnie is the expert so you have your answer, but its worth adding that you can also offset the mortgage cost secured against your residential property.
Our first BTL was bought cash, but the cash was extracted from my residential proerty by way of a new mortgage covering 100% of the purchase cost. It doesn't matter how you secure the loan, its what the loan is being used for that counts.
Our first BTL was bought cash, but the cash was extracted from my residential proerty by way of a new mortgage covering 100% of the purchase cost. It doesn't matter how you secure the loan, its what the loan is being used for that counts.
98elise said:
Sarnie is the expert so you have your answer, but its worth adding that you can also offset the mortgage cost secured against your residential property.
Our first BTL was bought cash, but the cash was extracted from my residential proerty by way of a new mortgage covering 100% of the purchase cost. It doesn't matter how you secure the loan, its what the loan is being used for that counts.
What he says ^^^. I currently have a not insignificant mortgage on my primary residence that has purchased a BTL outright.Our first BTL was bought cash, but the cash was extracted from my residential proerty by way of a new mortgage covering 100% of the purchase cost. It doesn't matter how you secure the loan, its what the loan is being used for that counts.
As you're looking at a primary residence swap then get a valuation at change-over to deal with any future CGT issues.
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