Using house as collateral for new mortgage

[borrow2buy]

Anyone done this? Did you find that your mortgage options were better because you had an asset?

I inherited a property some years ago and don't want to sell it, but would like to buy a new place with my partner.

you would need to raise a mortgage against that property if you want to realise any of the value as cash.

when you say "realise any of the value as cash" what do you mean exactly?

Do you mean you're going to remortgage your existing property to fund a cash purchase on another property?

Would I be able release funds through a buy to let mortgage on the house I own? Ideally i'd rent that house out and use the income towards the mortgage for the new house

Yes, you can get a BTL mortgage on the house you own. However most lenders are quite fussy about how much rental income they will consider as part of your income when you then a apply for the residential mortgage for the new house. Do you have a steady salary as well?

Yes you can get a buy to let mortgage on the property you already own (some call it let to buy). If you don't already have tenants you will need to get an estate agent, from an approved list, to give an estimate of rental yield. Just a warning, as the property you are buying will be your second, you will pay 3% above normal stamp duty, so make sure you factor that in to your calculations.

Hi I wanted to ask you a question or anyone who may know! from your last topic. About the two mortgages, because i'm new to all this. I have inherited a property but the current mortgage is not in my name. Would I have to go to the current providers or get a complete new mortgage via the bank, to enable me to get another property and at the sametime use the 1st property as collateral to cover the new one.