Changing repayment mortgage into a buy-to-let.....any advice please?
I own a flat - mortgage outstanding is £32k, value is now in the region of £100k.
I intend to buy a house with my partner, but am keen to hold onto my property and rent it out, not necessarily to make money now, but as an investment (ten years left on that mortgage).
I have around £30k for a deposit so don't desperately need equity from the flat.
I'm currently on a variable rate mortgage after the fixed term came to an end last Nov. Has anybody any experience of changing mortgages - is it better to stay with my current lender or should I be looking around?
Any advice would be much appreciated - ta :)
There is no harm in getting a quote from your current lender, but shopping around is also needed. With £30k in cash for the next property, you will get the best rate if you are looking for a new mortgage of no more than £45000, making a new purchase of £75000.
Any more and you will not get finest rates, or will struggle to.
Are you convinced that your existing property will hold its value in the current economic climate?, you seem to be placing an awful lot of your eggs in the one property basket?!
You need to do a risk analysis on the project, and to calculate cost of capital if you do not get a best rate mortgage on the new purchase.
As well as the earlier advice, consider increasing the BTL mortgage so that the new home mortgage has a higher deposit and therefore a lower interest rate.
There is tax relief on the interest element of a BTL mortgage. It can be set against the rent.
Do some figures at different levels to determine the optimum split.
Mike
There's no harms in looking around for a better deal! You can always get some free advice from our team here at lovemoney. You can call us free on 0800 804 8045 :-)
OR Take a look here: [url=/mortgages/]http://www.lovemoney.com/mortgages/[/url]
As well as the earlier advice, consider increasing the BTL mortgage so that the new home mortgage has a higher deposit and therefore a lower interest rate.
There is tax relief on the interest element of a BTL mortgage. It can be set against the rent.
Do some figures at different levels to determine the optimum split.
Mike
There's no harms in looking around for a better deal! You can always get some free advice from our team here at lovemoney. You can call us free on 0800 804 8045 :-)
OR Take a look here: [url=/mortgages/]http://www.lovemoney.com/mortgages/[/url]
There is no harm in getting a quote from your current lender, but shopping around is also needed. With £30k in cash for the next property, you will get the best rate if you are looking for a new mortgage of no more than £45000, making a new purchase of £75000.
Any more and you will not get finest rates, or will struggle to.
Are you convinced that your existing property will hold its value in the current economic climate?, you seem to be placing an awful lot of your eggs in the one property basket?!
You need to do a risk analysis on the project, and to calculate cost of capital if you do not get a best rate mortgage on the new purchase.
There is no harm in getting a quote from your current lender, but shopping around is also needed. With £30k in cash for the next property, you will get the best rate if you are looking for a new mortgage of no more than £45000, making a new purchase of £75000.
Any more and you will not get finest rates, or will struggle to.
Are you convinced that your existing property will hold its value in the current economic climate?, you seem to be placing an awful lot of your eggs in the one property basket?!
You need to do a risk analysis on the project, and to calculate cost of capital if you do not get a best rate mortgage on the new purchase.
There's no harms in looking around for a better deal! You can always get some free advice from our team here at lovemoney. You can call us free on 0800 804 8045 :-)
OR Take a look here: [url=/mortgages/]http://www.lovemoney.com/mortgages/[/url]
As well as the earlier advice, consider increasing the BTL mortgage so that the new home mortgage has a higher deposit and therefore a lower interest rate.
There is tax relief on the interest element of a BTL mortgage. It can be set against the rent.
Do some figures at different levels to determine the optimum split.
Mike
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Changing repayment mortgage into a buy-to-let.....any advice please?
I own a flat - mortgage outstanding is £32k, value is now in the region of £100k. I intend to buy a house with my partner, but am keen to hold onto my property and rent it out, not necessarily to make money now, but as an investment (ten years left on that mortgage). I have around £30k for a deposit so don't desperately need equity from the flat. I'm currently on a variable rate mortgage after the fixed term came to an end last Nov. Has anybody any experience of changing mortgages - is it better to stay with my current lender or should I be looking around? Any advice would be much appreciated - ta :)
Answers
mazzerp
,01 June 2010
,Lovemoney.com
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Answers
There is no harm in getting a quote from your current lender, but shopping around is also needed. With £30k in cash for the next property, you will get the best rate if you are looking for a new mortgage of no more than £45000, making a new purchase of £75000. Any more and you will not get finest rates, or will struggle to. Are you convinced that your existing property will hold its value in the current economic climate?, you seem to be placing an awful lot of your eggs in the one property basket?! You need to do a risk analysis on the project, and to calculate cost of capital if you do not get a best rate mortgage on the new purchase.
As well as the earlier advice, consider increasing the BTL mortgage so that the new home mortgage has a higher deposit and therefore a lower interest rate. There is tax relief on the interest element of a BTL mortgage. It can be set against the rent. Do some figures at different levels to determine the optimum split. Mike
There's no harms in looking around for a better deal! You can always get some free advice from our team here at lovemoney. You can call us free on 0800 804 8045 :-) OR Take a look here: [url=/mortgages/]http://www.lovemoney.com/mortgages/[/url]
As well as the earlier advice, consider increasing the BTL mortgage so that the new home mortgage has a higher deposit and therefore a lower interest rate. There is tax relief on the interest element of a BTL mortgage. It can be set against the rent. Do some figures at different levels to determine the optimum split. Mike
There's no harms in looking around for a better deal! You can always get some free advice from our team here at lovemoney. You can call us free on 0800 804 8045 :-) OR Take a look here: [url=/mortgages/]http://www.lovemoney.com/mortgages/[/url]
There is no harm in getting a quote from your current lender, but shopping around is also needed. With £30k in cash for the next property, you will get the best rate if you are looking for a new mortgage of no more than £45000, making a new purchase of £75000. Any more and you will not get finest rates, or will struggle to. Are you convinced that your existing property will hold its value in the current economic climate?, you seem to be placing an awful lot of your eggs in the one property basket?! You need to do a risk analysis on the project, and to calculate cost of capital if you do not get a best rate mortgage on the new purchase.
There is no harm in getting a quote from your current lender, but shopping around is also needed. With £30k in cash for the next property, you will get the best rate if you are looking for a new mortgage of no more than £45000, making a new purchase of £75000. Any more and you will not get finest rates, or will struggle to. Are you convinced that your existing property will hold its value in the current economic climate?, you seem to be placing an awful lot of your eggs in the one property basket?! You need to do a risk analysis on the project, and to calculate cost of capital if you do not get a best rate mortgage on the new purchase.
There's no harms in looking around for a better deal! You can always get some free advice from our team here at lovemoney. You can call us free on 0800 804 8045 :-) OR Take a look here: [url=/mortgages/]http://www.lovemoney.com/mortgages/[/url]
As well as the earlier advice, consider increasing the BTL mortgage so that the new home mortgage has a higher deposit and therefore a lower interest rate. There is tax relief on the interest element of a BTL mortgage. It can be set against the rent. Do some figures at different levels to determine the optimum split. Mike