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Remortgaging To Raise Deposit for Second Home

32
Found 21st May 2013
Does anyone have any experience remortgaging to fund the purchase of another property? Or recommend a broker or a lender?

The plan is to rent out the property I'm in at the minute and move into the house I plan to purchase.
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Where about are you based? I know a good broker in Southampton?
Original Poster
hyperemisis

Where about are you based? I know a good broker in Southampton?



Bolton.
Ah, bit too far then. Sorry. My advice would be go see a local estate/letting agent. Most of them have mortgage advisors they can refer and they can give you an ideal of rental income on your present property.

Original Poster
hyperemisis

Ah, bit too far then. Sorry. My advice would be go see a local … Ah, bit too far then. Sorry. My advice would be go see a local estate/letting agent. Most of them have mortgage advisors they can refer and they can give you an ideal of rental income on your present property.



No worries cheers anyway.
I've just re mortgaged my house to fund buying a place in spain. I used my independent financial advisor in southend and took out a rent to buy mortgage on my property with the mortgage works. They were not concerned about what or where i was going to use the funds for or when the property was going to actually be rented out. I got a rent to buy mortgage rather then just a standard mortgage as it was cheaper and a better interest rate. TMW think that i rent out the property but i still live in it. As long as i pay the monthly mortgage they don't know if the property is rented out or not.
You don't have to use a local financial advisor as all the paperwork is sent to you for completion.
My Sister's best friend's cousin's stepsister did it once. I think it was him anyway.
Original Poster
Toptrumpet

I've just re mortgaged my house to fund buying a place in spain. I used … I've just re mortgaged my house to fund buying a place in spain. I used my independent financial advisor in southend and took out a rent to buy mortgage on my property with the mortgage works. They were not concerned about what or where i was going to use the funds for or when the property was going to actually be rented out. I got a rent to buy mortgage rather then just a standard mortgage as it was cheaper and a better interest rate. TMW think that i rent out the property but i still live in it. As long as i pay the monthly mortgage they don't know if the property is rented out or not.You don't have to use a local financial advisor as all the paperwork is sent to you for completion.



I know it may seem like a stupid question but, did the balance of your current mortgage affect the amount you were able borrow?
Original Poster
deeky

My Sister's best friend's cousin's stepsister did it once. I think it was … My Sister's best friend's cousin's stepsister did it once. I think it was him anyway.



Cheers deek, both insightful and informative as usual.

VIP proposal submitted for that post.
danmc

Cheers deek, both insightful and informative as usual.VIP proposal … Cheers deek, both insightful and informative as usual.VIP proposal submitted for that post.



You're mad at me aren't you dan?
We used the Mortgage works for a buy to let mortgage on our previously mortgage free flat. We used this mortgage to fund the deposit on the house that we live in. I guess it was a little simpler as we already rented out the flat and we were paying rent and living in the house that we purchased but the principal is the same.

I would say find a good broker and use for both mortgages, they should know which suits your needs for both properties and help things move along smoothly so that the left hand knows what the right is doing etc.

Good luck with things.
Look at Dan high as **** trying to be serious talking about mortgages and ****.

Can't help you mate, good luck though
Dan, I am also currently looking in to this. I think you can borrow 75% on what the property is worth. I don't know if what you have left to pay on your current mortgage affects this. I tpropbably does, to the value/ ratio that you want to borrow (ie. 75% minus what you owe, if that makes sense).
Maybe someone else who has done it will advise...BTW, topt. what interest rate was your "rent to buy" mortgage at, and over how many years, and who with?
TY
Original Poster
deeky

You're mad at me aren't you dan?



https://i.chzbgr.com/maxW500/5051573248/hD8FFCFC9/
I can't answer that question as i bought my house for cash following my divorce, so i didn't have a mortgage.
Thinking about it the amount of the loan was based on the monthly expected rent, not on the market value of the house.
For example, The expected rent per month was say £1100 my financial advisor said that to get the 200k i needed the mortgage company would expect a monthly rental of £800, so as there was easily a difference getting the mortgage would not be a problem.
I've got several buy to let mortgages all with TMW, they are not the quickest but they do not ask too many questions, if you get my drift.
http://s17.postimg.org/x8vlhymqj/Untitled.jpg
Can't remember offhand the interest rate but i know it was a 2year fixed deal that finishes next may. All the paperwork is at the bottom of a box somewhere, if I get a chance I'll dig it out tomorrow.
Danmc
Remember you need a rent to buy mortgage, not a buy to let mortgage.
Original Poster
BridgetSpeirs

Dan, I am also currently looking in to this. I think you can borrow 75% … Dan, I am also currently looking in to this. I think you can borrow 75% on what the property is worth. I don't know if what you have left to pay on your current mortgage affects this. I tpropbably does, to the value/ ratio that you want to borrow (ie. 75% minus what you owe, if that makes sense).Maybe someone else who has done it will advise...BTW, topt. what interest rate was your "rent to buy" mortgage at, and over how many years, and who with?TY



I've enough equity to easily cover the money needed for the deposit & pay for repairs on both property's. My biggest worry is my income, I've just started a new job at the bottom of a pay scale, in 11 months I'll go to the top of the grade with a market supplement and my wage will go up by a third, until then most mortgage calculators are showing my max lend limit as 145k-ish when it needs to be up near 165k to cover both mortgages. I was hoping future income raised in rent could possibly be factored in?
danmc

I've enough equity to easily cover the money needed for the deposit & pay … I've enough equity to easily cover the money needed for the deposit & pay for repairs on both property's. My biggest worry is my income, I've just started a new job at the bottom of a pay scale, in 11 months I'll go to the top of the grade with a market supplement and my wage will go up by a third, until then most mortgage calculators are showing my max lend limit as 145k-ish when it needs to be up near 165k to cover both mortgages. I was hoping future income raised in rent could possibly be factored in?



Seriously dan, good luck. I wish I'd had the gumption to do something like this when I was younger.
Original Poster
Toptrumpet

DanmcRemember you need a rent to buy mortgage, not a buy to let mortgage.



Cheers for that, that's a new one on me, exactly what I need.
Banned
We re-mortgaged our house to build in the garden , through mortgage works, we let the first house moved into new house then bought the house next to the first house on a btl mortgage, got a tenant in there too , now we are applying for outline to build two small houses in that garden , deeky ...you think you are too old ? get a grip , danmc you are best off seeing a cheapy adviser , it gets complicated
Edited by: "goldmax" 21st May 2013
goldmax

deeky ...you think you are too old ? get a grip



Possibly not, but I still haven't got the gumption X)

Rent to buy mortgages have nothing to do with your income. I'm a stay at home mom, with no income, as long as the expected realistic rental income is sufficiently higher than the income needed to be generated to cover the repayments by the mortgage company then you shouldn't have any problem
Rent to buy mortgages are not widely available on the high street. Have a look on themortgageworks website and use their calculator.
If you work out the maximum you could get from the mortgage company then take the extra and put it towards the deposit on your next purchase.
Original Poster
deeky

Possibly not, but I still haven't got the gumption X)



http://www.selfhelpdaily.com/images/got-gumption.jpg
Banned
deeky

Possibly not, but I still haven't got the gumption X)



Everyone's situation is different deeky, mostly luck and knowing someone gives you an advantage , I have a few bottles of 'gumption' in the garage , tastes like **** but you are welcome
Original Poster
Toptrumpet

Rent to buy mortgages have nothing to do with your income. I'm a stay at … Rent to buy mortgages have nothing to do with your income. I'm a stay at home mom, with no income, as long as the expected realistic rental income is sufficiently higher than the income needed to be generated to cover the repayments by the mortgage company then you shouldn't have any problemRent to buy mortgages are not widely available on the high street. Have a look on themortgageworks website and use their calculator. If you work out the maximum you could get from the mortgage company then take the extra and put it towards the deposit on your next purchase.



The rent on my current property would almost pay the mortgage 3 times over. I've checked out the mortgage factory and whilst the concept seems ideal the rates aren't really that competitive and the fees seem a little high; I'm guessing as that's because like you say they do not take your income into account, just the possible rental income.

As Goldmax suggested maybe an adviser might be able to find me something that takes both into consideration.
goldmax

Everyone's situation is different deeky, mostly luck and knowing someone … Everyone's situation is different deeky, mostly luck and knowing someone gives you an advantage , I have a few bottles of 'gumption' in the garage , tastes like **** but you are welcome



I'm not really bothered now tbh. I'm on decent money now (wife as well) and I've got a decent railway pension (plus a 20 year index-linked one from the buses) and although you won't believe it, I've still got a good 13 years or so working We'll have plenty to run a car and have a couple of nice holidays a year. that's all we need really.
Banned
deeky

I'm not really bothered now tbh. I'm on decent money now (wife as well) … I'm not really bothered now tbh. I'm on decent money now (wife as well) and I've got a decent railway pension (plus a 20 year index-linked one from the buses) and although you won't believe it, I've still got a good 13 years or so working We'll have plenty to run a car and have a couple of nice holidays a year. that's all we need really.



Arggh , being self-employed I don't have the luxury of a pension to look forward to, private pension s aren't worth it so i decided a few years back to invest in a few deals with houses and planning , it's been up and down but hopefully it pays off in the end , my neighbour over the road is retired at 55 (ex raf) and has no financial worries(big pension) yet objects to me trying to develop bits of land for our future security
goldmax

Arggh , being self-employed I don't have the luxury of a pension to look … Arggh , being self-employed I don't have the luxury of a pension to look forward to, private pension s aren't worth it so i decided a few years back to invest in a few deals with houses and planning , it's been up and down but hopefully it pays off in the end , my neighbour over the road is retired at 55 (ex raf) and has no financial worries(big pension) yet objects to me trying to develop bits of land for our future security



You just worry about you and yours. So long as you don't do anything illegal, tell him to like it or lump it. It's ok for his with his nice pension.
Banned
deeky

You just worry about you and yours. So long as you don't do anything … You just worry about you and yours. So long as you don't do anything illegal, tell him to like it or lump it. It's ok for his with his nice pension.



Yeah , I know but in these small villages you get branded all sorts of things , yet most doing the shouting are incoming people with nice pensions , well later this week a yellow planning notice is going up .........the **** will hit the fan then X)
Banned
deeky

My Sister's best friend's cousin's stepsister did it once. I think it was … My Sister's best friend's cousin's stepsister did it once. I think it was him anyway.


more trolling i see
Toptrumpet

I've just re mortgaged my house to fund buying a place in spain. I used … I've just re mortgaged my house to fund buying a place in spain. I used my independent financial advisor in southend and took out a rent to buy mortgage on my property with the mortgage works. They were not concerned about what or where i was going to use the funds for or when the property was going to actually be rented out. I got a rent to buy mortgage rather then just a standard mortgage as it was cheaper and a better interest rate. TMW think that i rent out the property but i still live in it. As long as i pay the monthly mortgage they don't know if the property is rented out or not.You don't have to use a local financial advisor as all the paperwork is sent to you for completion.



Nice to see the mortgage lenders have tightened up on their lending policy.

Good news for you obviously.
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