Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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Im not ready to yet, but reasonably soon, id like to get my self a second home, keep the one i have now and move into a slightly bigger one. Rent the one im in now out.
Realistically is this possible?
Im 23, this is my 1st house, been here just under a year. I owe 101k. Property was valued at 115k when i got it, local prices havent really moved in the last year, and from my improvements to the garden, id estitmate it to be around the 115k mark still.
So i have approx 14k equity (well id like to have by time i want to do this).
I have the place on a repayment mortgage, and its around £600 a month.
I have no other savings at present, but i am now saving £200 a month
My thoughts are to change this to a interest only mortgage, then get the next on a repayment. (yes i know ure not ment to but ill risk it)
Is it possible??
[Edited on 13-06-2009 by Dan]
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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What sort of property you looking at getting?
Figures look tight already. Have you got another deposit?
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AK
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Registered: 5th Jul 00
Location: Aberdeen City
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can you afford to pay both mortgages off (as there will be times that its not rented)?
Do you have 20% deposit?
If no to either i'd re-consider.
Going by the vague figures you've said - 1000% NO.
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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By the time id want to do it, id have 20% deposit yea.
We could afford both mortgages if needed, house prices are low here, id be wanting around 110k mortgage.
Between us were currently left with 1200 spare cash a month to do with what ever we like. Ok we do waste it at present but we could easy save more.
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jrsteeve
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Registered: 3rd Apr 02
Location: Manchester
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You'll need to speak to your mortgage guy really to properly weigh up the figures and see if they have the products to suit. You have options such as 'let to buy' and you could also port your current mortgage to the new property, taking out a buy to let on the old one. You'll also have to see what your redemption penalties etc are going to be. Your current property would need to rent for around £600 to be worthwhile.
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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Will it tho? its rentable value is around 450 a month.
An interest only mortgage would probs only be 300?
Then its making 150 a month, that id save.
Id not get a buy to let as it would be 50% deposit. ill just get a normal one
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jrsteeve
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Registered: 3rd Apr 02
Location: Manchester
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Going off your figures it'd give a yield of 4.7% which isn't great to be honest, but if you're covering your costs then great. However its your lender who'll set what the yield needs to be so check their requirements.
You'd be paying a higher rate if you rented it out either with the same mortgage or with a new one as the risk to the lender is greater.
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jrsteeve
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Registered: 3rd Apr 02
Location: Manchester
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And buy to let is 25-30% deposit on average
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
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But.... if the property im in goes to interest only in my name, and the other property goes in the girlfriends name only... or visa versa?
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jrsteeve
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Registered: 3rd Apr 02
Location: Manchester
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if your earnings are high enough to raise a mortgage each then fine. Seriously though consult your mortgage advisor as it'll depend on debt, affordability etc
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
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Yea i will consult my step dad. He is my financial advisor lol
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