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Mortgage advice required

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  • Mortgage advice required

    I currently have a property and I am re-locating to a different area, I have been asked by a friend if he can rent my house off me (all legal with tenancy agreement etc) which I am considering. The advice I seek is how or what would my options be if I wanted to purchase another property in my new area where I am moving. I currently have approx £30000 equity in my current home with a mortgage of £135,000. I only have a couple of grand in savings not enough for a new deposit. The rental off my current home would more than cover my mortgage although I appreciate would have to change to a buy to let. Any help/suggestions welcome......

  • #2
    Re: Mortgage advice required

    Bear in mind that releasing equity will increase your Loan To Value, and may affect the interest rate you pay on your mortgage and monthly payments, so you need to find out what will happen if you release equity, and if it is even possible as they may ask for income details to find out about affordability to repay the additional borrowing or release of equity. that may well be the starting point looking on their website to see what would happen is the quick option.

    With regards to your lender you should check as not all lenders will neccessarily require you switch to a buy to let mortgage as some might only require an admin fee with you able to stay on the same interest rate if you think that is preferable to you of course.
    View Mortgage FAQ's, including Lifetime Mortgages FAQ.