Should we remortgate and buy?

[sunnylabsmum]

We have a 4 bed house (no mortgage) and a 1 bed Flat (50% mortgage) both rented out whilst we are overseas. Both are giving high yields. 4 Bed is our family home- currently bringing in 1000PCM from firm renting it. Have seen a 3 Bed family home in same village which location wise is perfect. It has planning too to extend to 4 bed. Much less overlooked than our 4 bed and larger plot

Am thinking about remortgaging 4 bed house to buy 3 bed house and rent 3 bed out for 1 yr till we return to the UK.(Firm renting our 4 bed have indicated that we would prob get 800-950 for a 3 bed) Don't want to sell flat, but could look at remortaging if poss. Do have some savings to use as well

3 bed is on for 275K. What would be a sensible offer- has been on for a month or so. Gut reaction is that it is overpriced as we would expect 235K for our 4 bed in the same village.

Do you think we would have problems remortgaging?
Thanks alot

You would have no problems remortgaging if you have no mortgage on the house and a good credit history and current tenants. Beware fees though - they have become crippling over past few months as lenders try to recoup some of their losses from bad loans.

First try negotiating on three-bed so you know how much money you need - generally BTL mortgages are max 80% of value. Then, try a mortgage broker such as London & Country - they are pretty good and also don't charge you, they get money from lender when you buy a product.

Sunnylabsmum you could contact my dp here if you want any help getting a mortgage or free advice, he wroks on the same principal as brokers such as London and Country.

Well remortaging is possible I've found out, and house looks ok am sending my mum off to view it this week on our behalf. (Mum loves viewing houses and claims its as good as a weeks holiday!!) Then we will see. We have both decided if it works for the right money then ok, but if it goes for stupid money then we will opt out. EA talked up the property location lots but its been on for nearly 3 months and is £40-£80K over the price of other 3 beds in the same village. Guess with the market as it is if we are prepared to wait it could work out for us

We asked the EA for an opinion as to what our house and flat were worth and found out we;d underestimated the total by £15K!