Posted on 15 November 2015 by Chris
Hi, my wife live and I live in a 2 bedroom flat worth ~ £130k, our mortgage is £88k we would like to rent this out (rental in the area is around £600-700 a month for similar property) and buy a house for ~£220k, we have £20k for the deposit, I earn £37k + bonus and my wife earns £14k is this feasible?
From the brief details you have supplied this looks like a feasible deal. The equity in your current property gives you some options, and I can't imagine that the rent likely to be achieved is likely to cause any issues.
Obviously we would need to know the all the details around your financial situation, as the new purchase as at 90% LTV and lenders credit scores and criteria are much stricter, but it does look that we may be able to help .
From the information you've so far supplied, then a 'Let To Buy' is certainly an option for you. Most Buy To Let lenders will allow you to capital raise upto 75% of the value of your current home, subject to the proposed rental income likely to be generated. You can then use the funds raised to provide the deposit monies for your new home and then take out a new residential mortgage for the balance.
We don't have to go to one lender for both loans, and so we can select the best Buy To Let, and the best Residential deals for you based upon your personal financial situation.
I can't say exactly how much we could get you on your new mortgage as I need full details of financial commitments and bonus history, but with your joint income of £51,000 I would be hopeful it should allow you to make the move you are looking to make.
I suggest that the next step would be to discuss your enquiry in more detail, if you would like to do this then please let me know and I'll arrange for one of our consultants to contact you.
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