Mortgage porting/ second mortgage advise needed

[pauldavies85]

I have a bit of a tricky dilemma.
I have recently bought a house value 235,000 with a ltv 85%. Fixed rate for 2 year at 3.69 % with rbs, portable.

Due to a change in personal circumstances, I'm now planning to move to Bristol around June time this year, I have job lined up etc.

I would like to keep current house and ideally buy another, though house/flat prices are higher in Bristol, I have seen a nice apartment Guide around 400,000.

Could I port my current mortgage which is 200,000 and then take out a second half to the mortgage, adding the additional deposit to keep 85 ltv? Rbs said they would lend me up 490000 with 85 ltv.

Then apply BTL on current house at same time?!

Or can I simply apply for new mortgage on new property with evidence of rental income on old place? At present repayments are £1000 and rental on house used to be £850 ( I knew old owners who rented it), I think I could make mortgage interest free to make it more profitable.

To make things worse, I'm self employed but will have 3 years accounts around 95-100k p.a.
Can you have two regular mortgages, I'm aware your not supossed to rent with a normal mortgage.

I don't have endless deposit, but could probably just about squeeze enough assuming 85 ltv in Bristol on 400 and 80 ltv BTL on 230(or less?) at current home.

Help needed! I can expect if there isn't much I can do and I'll rent for a while. I'm not desperate to buy but really like this property!

Thanks in advance

Paul

[IanMorewood]

Let to buy mortgage on the existing and a new mortgage on the one you want to buy can organise it so the two complete on the same day.

[pauldavies85]

Let to buy? Please clarify and pardon my ignorance

[IanMorewood]

pauldavies85 said:

Let to buy? Please clarify and pardon my ignorance

It like a buy to let mortgage but for when you already own the house in question, thus allowing you to buy another house.

[pauldavies85]

I assume I would have to add extra capital in to convert the mortgage? Would I basically changing the mortgage in my current house and have to pay early redemption etc? I know it would vary according to bank but wondered what the normal is

[IanMorewood]

Dont know for sure what the terms are of your current mortgage but you should be able to port it across to your new purchase avoiding the repayment penalties. But the chances are you would be needing to find additional capital for the let mortgage.

[pauldavies85]

Yes the advisor when i took out the mortgage said I could easily port it though the additional borrowing woud be a new current rate and kept separate.

Then I can apply for a Buy to let on my existing? Am I on the right track? Also, does the existing property have to be at the same value? Sounds bizarre but I bought it from my parents at top wack valuation and on the market it would of been negotiated down to say 220/225.

[scotal]

pauldavies85 said:

I have recently bought a house value 235,000 with a ltv 85%. Fixed rate for 2 year at 3.69 % with rbs, portable.

pauldavies85 said:

Could I port my current mortgage which is 200,000 and then take out a second half to the mortgage, adding the additional deposit to keep 85 ltv? Rbs said they would lend me up 490000 with 85 ltv.

Yes you can. Assuming your figures add up with RBS.

pauldavies85 said:

Then apply BTL on current house at same time?!

Technically yes, but 85% BTL is really restrcited. You'll either have to lower the LTV, or if they'll do it, go for permission to let on the new place

pauldavies85 said:

Or can I simply apply for new mortgage on new property with evidence of rental income on old place? At present repayments are £1000 and rental on house used to be £850 ( I knew old owners who rented it), I think I could make mortgage interest free to make it more profitable.

I think you mean interest only, not interest free. Nice idea mind.

pauldavies85 said:

To make things worse, I'm self employed but will have 3 years accounts around 95-100k p.a.

That should be fine on the borrowing you are talking about.

pauldavies85 said:

Can you have two regular mortgages, I'm aware your not supossed to rent with a normal mortgage.

Provided affordability is there, then yes you can. However as you say you will want to at least get permission to let on the existing property.

pauldavies85 said:

I don't have endless deposit, but could probably just about squeeze enough assuming 85 ltv in Bristol on 400 and 80 ltv BTL on 230(or less?) at current home.

At 80% BTl, the rates and fees are horrible.

pauldavies85 said:

Help needed!

YHM

[theboyfold]

Interesting topic, I'm hoping to do something similar in a couple of years and have very little idea how the idea of equity works vs deposit on a 2nd house / mortgage.