Deposit? Re-mortgage?

[misterg]

Hi

I have recently inherited a buy-to-let 2 bedroom property worth £120,000 that I dont want to sell because my family would kill me (my grandmothers ex home) It brings in around £500 a month which goes directly to my savings account. As for my situation. I'm looking at a home worth £215,000 which I'd really love to purchase. It's location is great for work! It will not be on the market for too long so of course I want to purchase it as soon as possible. Because this will be my first home purchase Im slightly unsure how much I will have to put down as a deposit. I currently have £12,0000 saved and the newly acquired property to my name. If I keep saving until next july I could possibly have £40,000. I was considering re-mortgaging my buy to let to afford a deposit?

Any help would be fantastic. Thanks forum

[Dan S]

Hi Misterg

My advice to you would be to leave the buy-to-let property alone and save enough for a 10% deposit on the £215,000 house you want to buy. If you can wait a little longer then save a 15% deposit and you'll notice a lot more choice in the way of mortgages.

Good luck with it all, it's a brilliant conundrum to have!

FTBGuru

[Dan_Manchester]

Originally Posted by misterg

Hi

I have recently inherited a buy-to-let 2 bedroom property worth £120,000 that I dont want to sell because my family would kill me (my grandmothers ex home) It brings in around £500 a month which goes directly to my savings account. As for my situation. I'm looking at a home worth £215,000 which I'd really love to purchase. It's location is great for work! It will not be on the market for too long so of course I want to purchase it as soon as possible. Because this will be my first home purchase Im slightly unsure how much I will have to put down as a deposit. I currently have £12,0000 saved and the newly acquired property to my name. If I keep saving until next july I could possibly have £40,000. I was considering re-mortgaging my buy to let to afford a deposit?

Any help would be fantastic. Thanks forum

Hi Misterg,

IMO you should initally see a mortgage advisor for a personalised breakdown.

Depending on your tax bracket and other incomes you may be able to release from equity on your BTL in a tax efficent manner (remembering of course that interest payments on BTL is deductible from rental income for tax purposes so increasing your interest payment isn't always a bad thing if it can help you reduce costs on your new house purchase).

Plenty of mortgage advisors you can see for free however perhaps paying £50-100 for an hour with one may save you a number of thousands over the longer term.

I hope this helps

[shanmarsh2]

Where an appeal is preferred by a borrower, such appeal shall not be entertained by the Debts Recovery Tribunal unless the borrower has deposited.