If you already own a property and decide to move but wish to keep your existing property and rent it out the first thing you need to do it work what you can afford.
Start of working out how much deposit you have for the new purchase and allow approximately 6% of value of the property you wish to buy. This amount is a rough sum to cover stamp duty, agents fees and legal fees.
Then, using our free Obligo tool, MortgageCalcs, you can work out how much you can afford to borrow. Add the deposit to the mortgage amount you can afford, and you have the amount that you can spend on your new place!
At this stage consider getting an agents valuation of your existing properties rental potential and ensure you can afford to support the mortgage if you are unable to rent it or have rental voids. Also, consider asking your existing lender if they will accept you renting out your property. We will be happy to assist with this, and can even propose a solution of your lender objects.
A Let to buy mortgage isn't nearly as much hassle as most people think – but at the same time it has pitfalls if you don’t know how to navigate your way through the different lenders.
Even with the big high street names, one slip of the pen on an application can signal trouble even if you have an A1 credit profile. One lenders rules do not apply to others and you would be amazed at the minor details that make a big difference to the outcome of your application.
