I want to rent out my current home and buy a new one to live in.
Posted on 11 February 2013 by Julie
I would like to rent out my house worth £120k with £93k left on the mortgage, and buy another to live in at £125k. How do I go about this?
This is what's commonly known as a 'Let To Buy', where you change your existing mortgage onto a Buy To Let product, and take out a main residence mortgage on your new home.
Without knowing the rest of your personal financial situation I cant say much more about whether you can make this move or not. You don't mention how much you would need to borrow on the new property, but as the Loan To Value (LTV) on your current property is almost 78% and most Buy To Let lenders cap their LTV's at 75%, then there's not much scope to raise a deposit from the equity. So the deposit for your new home would presumably be coming from an alternative source (savings,etc...)
If you'd like to talk through your options in a bit more detail, please let me know and I'll arrange a convenient time for you to speak to one of our consultants.
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