Help me understand remortgaging please

[KurriKawari]

Am usually great at understanding stuff like this but remortgaging has got me stumped!

I have seen a property that I want to buy.
I currently own a property that has increased in value, I want to release the equity in this to help pay deposit of the second property. I will sell first house as soon as I can, really don't want to lose out on second house.

These are the figures:
Value of current house £190k
Outstanding balance on mortgage £75k
Equity in house £115k
Price of second house £210k
Amount of deposit I want to put down on second house £105k

Can someone help me to understand:
How much would I need to remortgage first house? Thank you.

Youd need to release £105k from.yiur existing property. Therefore, you'd be remortgaging to £180k which only leaves £10k equity so your interest rate is likely to rise as your LTV will be much greater.

2 problems OP.

First the equity left as @Andrea says. The maximum most lenders will generally go to when remortgaging for capital raising purposes are 90% - and there might not be many decent lenders who will go that high - 80%-85% is more common. So you might be able to get out £90k max.

2nd problem - and I expect the biggest one- is that you will need to have the income to support both mortgages. £170k mortgage on house 1 & £105k mortgage on house 2. Total borrowing of £275k would need income(s) of around £60k......and that is assuming you have no outstanding debts, credit cards or other commitments such as nursery, education or child care costs.

The more common route would be to turn the first property into a buy to let mortgage (or in this case a let to buy mortgage) so that the mortgage is self funded by rental income. You could remortgage then no problem, but again would be restricted to around 80%LTV. So maximum loan would around £150k - thus releasing £75k. Problem with this is the new mortgage payments would have to be covered by the rental income at a set coverage rate. In this case 145% @5.5%. A quick calculation works this out as £1000pm.

If all that is doable then you are good to go. However, I feel that you are looking at more of a shorter term option, which would then take you down the route of a bridging loan.

Why don’t you just sell your house first? Is the market particularly hot? You could offer on the second house but they’d still want to show it if you aren’t under offer yet.
Seems a lot of hoops to go thru remortgaging - and buy to let wont work unless your rental is at least 125% of your mortgage payments and when I did that I needed to already have a lease signed tenants. Plus proof of other income. You’ll have to pay fees again too - next time get your existing house well on the market before you seriously start to look!

Ask an estate agent what to price your current house at to get a really quick sale?
You could offer on the new house if yours is on the market - you won't be in a strong position but if they haven't got any other offers they may accept your offer on the basis you find a buyer for your house within a few weeks.

Are you planning on selling the first property? If not you need an income to support both mortgages, pay higher rate stamp duty etc

Thank you all, I understand it better now and also that it's a no go for me.
My house is for sale and I did have a suspicion that the estate agent had over valued it, and proven right by the lack of interest. Have asked them to drop the price by £10k and have now got some viewings booked in. Fingers crossed!!