yet another mortgage question...

HouseTonyStark

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Right so i will run the facts out as best i can:

Managed to secure cash money from family to put into my first property, on the basis that it made more sense than renting in the long term. the idea was to buy it outright, then mortgage out at the best rate to pay some of it back and to fuel the renovation works on the house.

house cost 115k (without fees)

mortgaged out 69k (so a payment of 290 a month)

spent a chunk on the initial renovation and other crap.

that was a couple years ago, and instead of selling the house, I'm looking to let out a couple of the rooms, with a view to go travelling (assuming the house can pay for itself). over time the area has gone up in value, and its fair to say the renovation (once completed) will push the house to around the 200k mark.

What I'm thinking to do is finish the house, get it revalued and then mortgage out as best i can to a point where i can pay off the family debt, whilst maintaining a reasonable repayment that i can cover while i am away (so keeping it exclusive of any earnings i might have)

The problems I've been trying to google with little success:

- I became self employed last year, which is working great for me financially, but isn't good for getting a mortgage.

- I'm still technically living in the house, so is it a landlord/BTL mortgage?

- can i even remortgage at a projected level, is it really as simple as getting some valuation people to say 'yup seems legit'

am i missing anything here?
 
You don't necessarily need a BTL you can get a residential mortgage initially and start by say renting one room while you are in it. The government allows a certain amount of income from this free to tax (not sure how much without googling). Then when you go travelling let out 2nd room on "house share" basis as you don't want to go down the HIMO road as rules and regs are annoying unless you plan now with it in mind and do your renovations accordingly ie hard wired smoke alarms fire escapes etc.
if you go shared house method just inform your mortgage and insurance company and they should allow it. Find a broker to go through the options.
 
You don't necessarily need a BTL you can get a residential mortgage initially and start by say renting one room while you are in it. The government allows a certain amount of income from this free to tax (not sure how much without googling). Then when you go travelling let out 2nd room on "house share" basis as you don't want to go down the HIMO road as rules and regs are annoying unless you plan now with it in mind and do your renovations accordingly ie hard wired smoke alarms fire escapes etc.
if you go shared house method just inform your mortgage and insurance company and they should allow it. Find a broker to go through the options.

Glad you were able to untangle some of that Steve. It got a bit complex, but you are the man for this sort of thing.
 
aha sorry @blue max i did get a bit hard there.

the TLDR; bought house for 115, mortgaged up to 69, will soon be worth 200, self employed now, want to increase mortgage and rent out 2 of the 3 rooms.
 
115k to 200k is a steep climb for just renovation work and a postcode bump unless we are talking about London of cause. We are still running at roughly 20% below the 2008 prices (in our area atleast) I paid 110k cash for my house with 3 extensions and I wouldn't think anything over 160k would be possible.

Anyhow my main point was make sure you have things in place for when you go travelling. Tradesmen etc Boilers always break down in rentals when your in another country (they are designed that way)
 
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@DarenD - gas Central heating has been added, modern electrics, , as well as a full total renovation underway, house was bought for about 30k under area value due to work needed, and the area has just shot up.
 

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