Need Advice

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New to this.... I have it, no I haven't, more money, new bids, estate agents...are they for real .... Help .....

Just looking for some advice, currently trying to buy house 400,000. I need 250,000 of a mortgage. My current house is valued 250,000 which I would like to keep and rent out and use the rent to pay new mortgage - no mortgage on current house. Can I seek loan from lenders on the basis of my current house as security or do they look for yearly income, etc.

Sorry for rant at top, but I now know what previous posters were talking about re. estate agents .......
 
Have a read of this post to understand the pros & cons of holding onto your current property as an investment. Make sure you fully understand the tax impacts of your decision before you proceed.
 
Concur with RainyDay.
The lender would normally look at the combined position for comfort on the LTV.
Given that this is your first BTL, they would of course look at the rental, but would be also looking at your income as regards potentially supporting both.
You do realise that the rental yield is prety poor.
From tax point of view the borrowings on the BTL are deductible interest wise.
 
Thanks for advice ...... I now have time to rethink my poisiton, as I was priced out of the house I was going for, some mad bidding going on out there. I may now consider a sunnier climate.


Thanks again..... cheers
 
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