Posted on 11 February 2013 by Fiona
We currently have our house on the market for £215k. I have a mortgage on it for approx £83K, I expect to get around £207K. Meaning I have around £124K equity. I had a sale that fell through near contracts and so we are now desperately trying to hold onto the house we were buying. The house we want to buy is £190K. Are there any opportunities open to us to Let to Buy, so, let ours and use the equity to buy the other house? I currently have a mortgage in place for £79K. (sole mortgage, as my partner has a blip on his credit file.) Are there any chances we can hold on to our current property and still buy the other, which we need to do asap! Many thanks.
Subject to meeting the lenders criteria, rental income the xeisting property would generate, and your overall financial position, then it would seem feasible to capitial raise on your current home, and take out a new residential mortgage on then one you want to buy.
With Let To Buy you can (subject to the lenders rental calculation) take out a mortgage typically upto 75% of the property's value, and then using the funds as the deposit for the new home. We would then look to submit a new main residence application, either topping up your existing loan or with a brand new lender, if there are more beneficial deals available.
Without knowing some additional information surrounding the rest of your personal details, I can't be anymore specific, but I do think on the face of it, we would be able to assist you.
If you'd like to have an initial discussioon with one of our consultants, then please let me know, and I'll arrange a convenient time for one to contact you.
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