FINANCIAL ADVISORS- HELP ME PLEASE

[youcantlabelme]

I have a mortgage free property worth approx £120k that is rented out for £675pm and I earn approx £25000 pa.

Would it be feasible for me to get a £200-225k mortgage with the above?

I would go and visit an IFA or visit mortgage adviser in a bank?they would ask you so many more questions than you would want to answer on here....on the figures you have given it would be a big stretch?I assume that you are looking to have the mortgage to buy another property?

Not unless you were buying another property with it.

And I doubt you would be able to on your current salary. Most you could borrow would be three times your salary, ie £75,000.

BandB: Yes, I will just thought I'd ask on here first and see if I am barking up the wrong tree

BBM: In my head I thought maybe if I could borrow against the flat and 3x my salary, plus whatever rental income I get...

Or am I being very very unrealistic and stupid?

and yes, it would be to buy another property.

4 times salary is standard these days, sometimes more.

The standard % over the mortgage is around 130% I think which on your property would allow for a mortgage repayment of 675/130%=£519 per month.

Now I can see figures out there at less than 4% and 70% LTV which would mean 120k*70%=84k which at 4% is an interest only repayment of £280 per month, so well under your £519 limit.

So add your £84,000 to your salary mortgage of £100,000 and you have £184,000. I think you might squeeze £200,000 from someone if they understand your whole financial position as the big bonus is the 675/280=240% cover on your BTL mortgage.

Even if you could get the mortgage could you afford (both) the mortgage payments if the house was unocccupied? You would need savings (or should have) of at least six months rent, some lenders insist on you having that.