Posted on 30 November 2012 by Fiyori
I earn £26,500 per year, have £79,000 left on my mortgage and loans totalling £2,000.
My house is valued at £170,000 and I want to take out £10,000 equity, then buy a flat and turn my existing mortgage into a buy-to-let. Is this possible?
p.s The property I want to buy (2-3bedrooms) worth between £210k - £300k
From the figures you've provided, I can't see any reason why you shouldn't be able to raise the additional funds and convert your current home to a Buy To Let, and purchase your new flat.
The main factor for most Buy To Let lenders is the rental income, which needs to be, typically 125% of the mortgage payment or a notional rate decided on by the lender.
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