Posted on 21 February 2011 by j chapman
Hi, I own a flat worth £160,000 wih no mortgage that I rent out for £600 per month. I would like to buy a second property for myself to live in around the same price. I can only get a £100,000 mortgage on my salary. Would a bank lend me £150,000 on the basis I already own a flat outright?
You would be able to borrow the amount you require so long as you are willing to mortgage both properties.
A Buy to Let mortgage can be arranged on the existing property and on a monthly rent of £600 I expect you could raise around £90,000 - £100,000. This would give you the deposit for a new property and allow you the pick of the current residential interest rates if combined with a mortgage of £100,000 or less based on your earnings.
There are tax advantages to raising the deposit as a Buy to Let and I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date of your question, they will be able to look at your situation and advise you accordingly .
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