Buy to let mortgage

[DLCC]

Hi there

My DP is looking to purchase a house and I would look to move in with him next April when my mortgage period is up. He is having to get a 95% mortgage on a 300k property. The house is sufficient for him and his two DSs to live in (he has them 50% of the time). However if my two DSs and I were to move in we would have to look at extending it. I own a house thats worth approx. 260k and my mortgage is 127k. Ideally what Id like to do is change to a buy to let mortgage, rent my property out (was recently quoted 1300 by three agents) and release some cash in order to fund the extension. I would also look at me going on his deeds/mortgage to safeguard my financial input.

Is this a possibility do you think or am I living in cloud cuckoo land??

Yes that's possible (sort of what I did) You will need to leave 25% equity in your house and can remove the rest. The monthly rental value would need to be approx 125% of the mortgage payments. Convert to an interest only mortgage, then the mortgage payments can be deducted from any profit you make (as will other expenses). Tax will need to be paid on any profit.
Both DH and I did this when we moved in together. We both converted to BTL's, pooled the money and bought a property together.

Actually getting the mortgage is one thing - but actually being a landlord isnt as simple as it seems and could lead to many headaches.
In the first instance, can you afford to pay the mortgage if the property is empty for say 2 months? What work do you need to do to rent it out? What if/when mortgage rates go back up?

Not saying its a bad idea, but you need to be fully prepared.

Hi there

That's good to know Heels, many thanks for that. Sunny, I've been a landlord before so that's not really a concern for me, although I have heard some horror stories!

Thanks both for your comments.