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Property Predicament..!! Advise please.

IL Cattivo

Distinguished Member
Hi guys, am looking for some sound advice or examples of what other people have done successfully in relation to my current situation!

I own a house and it's in my sole name with a Mortgage from a high Street vendor.

I am looking at getting a property together with my girlfriend but the housing market is very slow at the moment in the area where I live and it's getting hard to shift on the market, therefore I am looking to do something like this in order for us to get our one place together...

Change my mortgage to a Buy-To-Let and lease my current property out.
Acquire another property using my current property as Collateral against the new one which will also have a mortgage (not Buy-To-Let) against it...

Therefore I am running two properties one with a buy-to-let mortgage and another with a normal High Street mortgage together. obviously the B-T-L property will pay for itself via the tenant income with hopefully a little bit of profit on the side coming in.....!

Is this a viable option to do and would lending companies accept this kind of setup? BTW my current property is also well in equity....

Some advise on how I can attain this setup would be great as i ave little to know experience in how I can achieve it. I just rather like the thought of keeping my current house as a potential nest egg too which may increase in value more over time.

Many Thanks

UKB
 

eric pisch

Distinguished Member
all depends on how much equity you own of the house, ie the LTV

i believe you need to own something like 25% just to get a BTL mortgage now

and to use it as the deposit for another house i would expect they would want an additional 25% if you can even do this on a house that's already BTL mortgaged

so do you own 50% of the property based on current realistic valuations?
 

IL Cattivo

Distinguished Member
all depends on how much equity you own of the house, ie the LTV

i believe you need to own something like 25% just to get a BTL mortgage now

and to use it as the deposit for another house i would expect they would want an additional 25% if you can even do this on a house that's already BTL mortgaged

so do you own 50% of the property based on current realistic valuations?

Thanks eric...

You know what, its pretty darn close to those figures....

£100,000 Mortgage
Property valued at £185,000 :rolleyes:
 

eric pisch

Distinguished Member
Thanks eric...

You know what, its pretty darn close to those figures....

£100,000 Mortgage
Property valued at £185,000 :rolleyes:

if thats the case find your self a whole of market broker and get some advice, they often know specialist companies that do tailored mortgages and they certainly have products not available to joe public
 

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