mikeyb10supra Posted August 10, 2009 Share Posted August 10, 2009 Im sure there are a few people that have done this in the past so was just wondering what sort of things are factored into you getting a second mortgage on somewhere else? I currently have 25k invested in my flat and that would probably be the one I would rent out. Was just wondering what the process involved in getting a second mortgage to buy somewhere else to live would involve? Any advice would be welcome Cheers Mikey Quote Link to comment Share on other sites More sharing options...
tbourner Posted August 10, 2009 Share Posted August 10, 2009 Do you have a deposit to use? Can you remortgage the flat and get the equity out? I would imagine best bet is to remortgage your flat onto buy to let (if you can remortgage that way), interest only, and use the money as a deposit on a house as you normally would. Quote Link to comment Share on other sites More sharing options...
mikeyb10supra Posted August 10, 2009 Author Share Posted August 10, 2009 Thats kind of my thoughts to Trev, although im not 100% sure how much equity you are allowed to release on the current property. I will need to do a bit more digging I think but either way its not going to be for a while yet.....well until the market sorts itself out a bit Quote Link to comment Share on other sites More sharing options...
tbourner Posted August 10, 2009 Share Posted August 10, 2009 It's a good time to buy now though isn't it? Assuming you do have about 20% for a deposit. Quote Link to comment Share on other sites More sharing options...
SimonT Posted August 10, 2009 Share Posted August 10, 2009 As far as i know you would have to get the equity out of your flat and re-mortgage it as a buy-to-let and then put that 25k down as a deposit as i dont think you can get a new mortgage at the moment with out about 75-80% loan to value Quote Link to comment Share on other sites More sharing options...
Snooze Posted August 10, 2009 Share Posted August 10, 2009 It's a good time to buy now though isn't it? Assuming you do have about 20% for a deposit. I'd have said "No" up until last week. House prices have stabilised a bit, but were still in the position where they could go either way - the recession could get much, much worse yet. Therefore I suspected that, at best, house prices would probably stay about level for the next 5-10 years at least (therefore probably bad investment). The lettings market is also pretty saturated right now - lots of property around. And with mortgages being quite cheap, rental prices have come down too. HOWEVER, now I'm not so sure. The Bank of England has announced it will print (sorry, "quantatively ease") another £50bn into the economy, which could actually benefit house prices in the mid-term. The money will take a few years to actually get into proper circulation (ie. get to homebuyers), but after that, there'll be plenty more money out there, pushing house prices back up. Coupled with that, the extra money in the economy will drive inflation quite quickly, so you're actually best to have as much debt as possible if and when that happens. Of course, it will all go totally pear-shaped not long after that (5yrs or so) - the extra money is going to send inflation up massively and the GBP is probably set to crash on the international market. In my opinion. Quote Link to comment Share on other sites More sharing options...
Carl_S Posted August 10, 2009 Share Posted August 10, 2009 I think there is something called a first or second charge, where you approach your current mortgage provider for equity release.. I thought about it, but can't really afford a bigger mortage and the hassle of another place. Nothing like proper financial advice though from an Independent financial advisor. Quote Link to comment Share on other sites More sharing options...
brettjones Posted August 10, 2009 Share Posted August 10, 2009 let to buy is a risk i would strongly recommend getting financial advice i nearly lost the family home once be care full if you have £25k in your flat then your are lucky i would keep it there myself Quote Link to comment Share on other sites More sharing options...
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