Second house, mortgage, buy to let, halpppppppp

Second house, mortgage, buy to let, halpppppppp

Author
Discussion

lukefreeman

Original Poster:

1,492 posts

174 months

Monday 16th March 2015
quotequote all
Before I get the replies stating “Ask Sarnie” (Which will happen in due time, don’t worry!), I want to see if anyone else has done something similar before:


We live in house 1, Value £115k, 25% in it, 8 months away from the end of our fixed term deal. £650 a month for the remaining term 13 years, 8 months.

Believe we could rent this for £450-500 PCM.

Seen house 2, value £180k, could put down 15% from our available savings. Move into this house.

The question is, can we get a mortgage on the second house? Can afford topping up the 1st house payments until November, then do I re-mortgage as a buy to let, increasing the term to 25 years, so that the repayments are less than the rent income? Or do I remortgage now? (Can I remortgage house 1 now, as I’m in middle of fixed term?)


P.S. I don't see house 1 as an income stream........more a savings pot. (Idea would be to get 80% value in it, then remortgage and stick 40% into another etc.

Sarnie

8,025 posts

208 months

Monday 16th March 2015
quotequote all
Am I allowed to post a response? smile

lukefreeman

Original Poster:

1,492 posts

174 months

Monday 16th March 2015
quotequote all
Sarnie said:
Am I allowed to post a response? smile
You was gonna get a seperate email/private message (Cause I'm kind like that :-)) Just wanted to here if people have done this kinda stuff before!

Please don't take my post as offence or anything.

Cheers

Salgar

3,283 posts

183 months

Monday 16th March 2015
quotequote all
Most people who invest in buy-to-let housing do it on an interest only basis, that way you have the lowest possible mortgage payments, which brings in more income and also costs less during times of tenancy void. And you also still get to realise the same capital gains, as that doesn't matter whether you're paying it off or not. With the extra money you save from not paying off the mortgage you would be better off saving in other ways to get a higher interest rate.

As to whether you will get a mortgage or not, I'm not sure.

p.s. no I don't have any houses yet smile

cailean

917 posts

172 months

Monday 16th March 2015
quotequote all
Port your current home mortgage to new house (if allowed) and get let-to-buy interest free mortgage on existing house - will all depend on income levels/affordability etc. 15% down seems low though.

lukefreeman

Original Poster:

1,492 posts

174 months

Tuesday 17th March 2015
quotequote all
cailean said:
Port your current home mortgage to new house (if allowed) and get let-to-buy interest free mortgage on existing house - will all depend on income levels/affordability etc. 15% down seems low though.
If I ported mortgage to new, there'd be a defecit on £70k, so I'd have to take a mortgage out for that?

I could put down current savings on our old house (£30k on a £115k) which gives around 25%

If I sold a car I could raise more cash too........FML.

lukefreeman

Original Poster:

1,492 posts

174 months

Wednesday 22nd April 2015
quotequote all
Sarnie, emailed you, think we've seen the next house....


Sarnie

8,025 posts

208 months

Wednesday 22nd April 2015
quotequote all
Replied! smile