Re finance to buy another property
Discussion
Mattiebmw said:
Hi, sorry if this has been asked before…. I’ve a load of equity in my property, can I re Mortage to realise some, use that as a deposit for another house, move into the new house then put the old one onto a btl Mortage ? Or is that a massive hassle
Yes it's possible but it will be a LTB mortgage not a BTL.......only you can decide if it's a hassle or not 
It's a LOT of paperwork buying any house nowadays. But there ain't no such thing as a free lunch so if you think it's financially worthwhile then worth going through.
Be prepared to prove your identity several times, and put up with slippery valuers from the mortgage company who commit to nothing without further experts looking at any slight defect.
Solicitors charge a lot for not doing very much (it seems), mortgage advisors get very little for doing a lot of work. Sigh - you can tell I'm getting slightly worn out by the process we're currenlty going through which is like pulling teeth
Be prepared to prove your identity several times, and put up with slippery valuers from the mortgage company who commit to nothing without further experts looking at any slight defect.
Solicitors charge a lot for not doing very much (it seems), mortgage advisors get very little for doing a lot of work. Sigh - you can tell I'm getting slightly worn out by the process we're currenlty going through which is like pulling teeth
Sarnie said:
Mattiebmw said:
Hi, sorry if this has been asked before…. I’ve a load of equity in my property, can I re Mortage to realise some, use that as a deposit for another house, move into the new house then put the old one onto a btl Mortage ? Or is that a massive hassle
Yes it's possible but it will be a LTB mortgage not a BTL.......only you can decide if it's a hassle or not Mattiebmw said:
Cheers sarnie, I would most likely seek your help professionally if I do go through with this… would I be right in thinking a LTB is interest only like a BTL?
It's up to you, you can have it on Interest Only or Repayment, the vast majority of BTL/LTB mortgages are on Interest Only As someone who has one BTL this would be the last thing I would personally do in your situation.
With the tax on the rent, interest payments on the mortgage, and potential stamp duty when you sell it you will effectively be making zero money for the grief.
As others have said, don't forget the secondary stamp duty as well.
With the tax on the rent, interest payments on the mortgage, and potential stamp duty when you sell it you will effectively be making zero money for the grief.
As others have said, don't forget the secondary stamp duty as well.
The property I would be looking at would be between 200-250k so I don’t think stamp duty would be due? With the flat, rents silly round here, my neighbours pay double what my re payment Mortage is, but so long as it paid for itself I wouldn’t be to bothered… but yeah I might wait and see what amazing things the budget has in store for us lol
Mattiebmw said:
The property I would be looking at would be between 200-250k so I don’t think stamp duty would be due? With the flat, rents silly round here, my neighbours pay double what my re payment Mortage is, but so long as it paid for itself I wouldn’t be to bothered… but yeah I might wait and see what amazing things the budget has in store for us lol
You will pay additional rate stamp duty if you already own a property......Gassing Station | Finance | Top of Page | What's New | My Stuff