our house isn't shifting and we're desperate to move into new area.
anyone got experience of either:
1)remortgaging their original house to release equity for new house (and new mortgage) & converting old mortgage to buy to let
2) getting open bridging loan (as we haven't yet sold) - I know these typically have health warnings attached!
Without going into huge detail, we have a high mortgage with around 30% equity in our current house. We also have a relatively high income. Our house would rent out for approx £1800 a month which should cover buy-to-let interest only mortgage payments but possibly not up to 125% as often specified.
Don't have experience of this but are in a similar position of not having sold. Only thing I would say is if you plan to use an agent to let then take 10-15%(+vat) out of the rental income before you start. Also if it goes unoccupied you'll have to find that money, plus council tax (at 90%), water and utilities.
Don't know if still just applies but when I was researching this 1-2 years ago, my mortgage adviser said Intelligent Finance would allow you to run 2 mortgages without insisting on buy-to-let ie they would let the first mortgage run in the background.