FrankSpencer Posted January 29, 2012 Report Share Posted January 29, 2012 Good evening, all. I am a brand new member and have looked around the forum at various threads, so I hope that I am not duplicating information which has already been posted. I had been thinking about selling my mortgage-free house and buying another house a few miles away. However, having found out how much my neighbours have been getting in rent for their identical houses, I am thinking that it may make sense to see whether I can raise some money against this house to put towards the purchase of a house or flat nearby into which I shall move. I would hope to buy the new place outright with a combination of the equity released from my house and also from some savings. I would probably want to raise a mortgage for about 60% of the value of my house. The intention would be to get a HMO licence for this house etc and seek to rent it, as is common in this area, to a group of urban professional sharers. If I take out a loan against the house, I think that I will be able to offset mortgage interest against rental income (along with the usual allowances). I am not sure if I am on-track and it is something that others may have experience of or whether I'm way off-beam! Any pointers or comments greatly appreciated. Link to comment Share on other sites More sharing options...
Mortitia Posted January 29, 2012 Report Share Posted January 29, 2012 Buy to let mortgages are not impossible to get and I have a few but more recently I have re-mortgaged my main residence to make a quick purchase on a distressed sale. I thought it was quite a good idea and am suffering no ill effects. I'm sure someone will tell me different! A lot of landlords take on 'interest only mortgages' to keep the payments low - I always go for straight 'repayment' types to pay off and make that property ready to borrow against. Your plan sounds good to me. Mortitia Link to comment Share on other sites More sharing options...
Richlist Posted January 29, 2012 Report Share Posted January 29, 2012 Mortgage rates on PPRs tend to be lower than BTL mortgages and carry lower arrangement fees and better terms and conditions..... so it makes perfect sense to remortgage your PPR or obtain a flexible PPR mortgage that allows an appropriate draw down facility. Link to comment Share on other sites More sharing options...
Geezah Posted March 4, 2012 Report Share Posted March 4, 2012 You are looking at a 'Let to Buy' arrangement, makes a lot of sense. If you are indeed going to let your exisitng home and raise money on it, a residential remortgage would leave you in breach of your mortgage conditions. However, there are some lenders in some situations who will allow you a residential remortgage. I always try to get my clients the cheapest deal available but the devil is always in the detail as there is no standardisation amongst lenders. Each one will have its own vastly different terms and conditions, the difference of which may surprise you. Link to comment Share on other sites More sharing options...
thefilly Posted March 8, 2012 Report Share Posted March 8, 2012 Hi Geezah, I didn't know that you could get on a residential mortgage. So that would mean you can have two residential mortgages? Thanks ! Link to comment Share on other sites More sharing options...
Geezah Posted March 8, 2012 Report Share Posted March 8, 2012 Absolutely, I have done this for many of my clients, quite legitimately. Problem is that many people listen to people who make sweeping statements who don't know what they're talking about. Like I said, the devil is always in the detail.and keeping up to speed with the various lenders' ever-changing criteria. Feel free to PM me if you want to know more. Residential deals are much cheaper than BTL deals and that's what I look at first. Link to comment Share on other sites More sharing options...
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