Can I do a Let to Buy?

Posted on 30 October 2012 by Andy


I have my house on the market without much interest so was thinking of letting it out and some how purchasing another house to live in. I have a 90k mortgage and the house is worth around 155k. Estimated rent would be 700pm. Me and my wife earn a joint 40k before tax. Would we be able to get something else and if so how much would we have available?? Thanks Andy.

Andy,

Based on the initial figures provided, it may be possible to capital raise on your existing property, to around 75% of its current value, which would release approx £26,250. We would need to know if you have any additional funds to add to this amount, to form the deposit on the new purchase, but assuming this would be the full amount, it may be possible to look at a purchase price around the £200,000 level.

The level of the new mortgage would be dependent on the rest of your personal situation, including any other financial commitments. If you would like to discuss your enquiry in more detail, then please let me know and I'll arrange for one of our consultants to speak with you.

Alistair

contact@johncharcol.co.uk

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