Rabbithunter 456 Posted April 13, 2013 Report Share Posted April 13, 2013 Yeah, I know I should go & see an advisor. But looking for an insight before I do, as it can be a pain in the arse getting into town making appointments etc... So heres the situ I bought I house for £70,000. £21,00 was my deposit meaning I borrowed £49,000 My mortgage payments are around 260 a month Now lets say I want to rent out my house and buy another for £200,000 Is it likely I will need to gain.another decent size deposit, or can I use the value (70,000) of the first house as deposit? Hopefully someone can help me? Cheers Quote Link to post Share on other sites
Rabbithunter 456 Posted April 13, 2013 Author Report Share Posted April 13, 2013 I think I can easily rent my house out for 450 a month which more than covers the mortgage Quote Link to post Share on other sites
LaraCroft 863 Posted April 13, 2013 Report Share Posted April 13, 2013 Check with the mortgage company - if you rent it out, they may want to change the mortgage from "home owner" to a "buy to let" which may have different rates, and affect the sums you are working with. As for deposit - not sure, but the rented house value would be used to cover it's own mortgage, so they may not want it to be used as deposit for a second one. Quote Link to post Share on other sites
smithie 2,444 Posted April 13, 2013 Report Share Posted April 13, 2013 to buy to rent you need to place a 15% deposit down on the morgage, once your up and running its possible to borrow up to 3 times the value to buy another as long as theres tennants for both. i have no experiance in this its what i was told from my neices dad who rents his house out and used to have a share in a property letting business.. a Quote Link to post Share on other sites
Waz 4,293 Posted April 13, 2013 Report Share Posted April 13, 2013 Some mortgages there may be a clause that you cant rent out the place for a couple of years. Quote Link to post Share on other sites
loafer 49 Posted April 13, 2013 Report Share Posted April 13, 2013 No Quote Link to post Share on other sites
Nik_B 3,791 Posted April 13, 2013 Report Share Posted April 13, 2013 You have £21,000 of collateral not £70,000. They might count that in your favor but banks are tighter than a duck's arse about lending money out these days and generally want huge deposits like 25%. Quote Link to post Share on other sites
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