# Any Financial Advisers/Mortgage Experts/Estate Agents about?



## AmandaB1971 (Feb 19, 2006)

Sorry for the long title, just wanted to cast my net widely!!    

We have been to view a house today and have fallen in love!   It's a new build and absolutely perfect and (now this will sound weird so sorry) the back garden overlooks the graveyard where my Grandad (me and him were very close) is buried and I could see his headstone from the back bedroom window (which far from leaving me spooked made me feel very serene and as if he was looking out for me - as he always did).

Now, here's the rub, our house we live in isn't finished and so we don't think we could put it up for sale in that the boiler is 35+ years old (yes we have the carbon footprint of the jolly green giant!  ) and we need to plaster our bedroom etc although it does have new kitchen, bathroom.  So I've spent all afternoon feeling v sad that it just isn't practical for us to have the new house but then DH has just said as a throw away remark "well I wonder if we could buy it and keep this to rent out!"  Which maybe isn't as daft an idea as he first thought!  Particularly as we head for retirement it would be a good investment.

What we don't know is this...  We don't have savings to put a deposit on the new house (£203k so deposit needs to be about £30K I guess at least) BUT we do have 50% equity in our current house!  Is there anyway of using the equity in the current house to off set the deposit for the new house (without remortgaging current house which we don't really want to do due to the awesome tracker we have which was just pre-credit crunch) or would they just laugh at us?

We're 38 years old but so green when it comes to stuff like this as DH bought this house from his Nan when he was 20 years old and I've never bought a house. 

Sorry its a ramble but if anyone can give us a bit of a steer either professionally or from personal experience we'd be so grateful.

Thanks!  

Axxxxxxxxxxx


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## dtw01 (Jan 28, 2007)

Hi hun,

Sounds like the house was meant to be, so if you have fallen in love with it don't give up on it without a fight !

I am a mortgage advisor tied to a building society, and my advice would be to contact who you are with at the minute for your mortgage, explain the situation and see if they can help.

If not then you may have to look at re mortgaging onto a let to buy product, as long as the monthly payments are covered by the rent that you would receive then you will be ok.

Anyway give your bank,Building society a ring first and good luck.

I was in a similar situation recently, wanted to buy a barn at auction but have a house not even on the market, my mortgage is with the Nationwide and they were fab !!!

Let me know how you get on.

H xxx


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## AmandaB1971 (Feb 19, 2006)

Ah thanks hun. 

My Sister uses a financial adviser for all her wheeler dealings (she has made some very shrewd property decisions over the last 10 years!) and I am tempted to give him a go.  Our current mortgage is with Abbey but they weren't very good when we got the last one, lost our docs, put us on wrong deal etc etc! (sorry if you work for Abbey Hun!  )

Anyways if all else fails we'll contact Abbey as ultimately if we can't keep it for renting we just want to buy other one while we sort out finishing and selling this one!   Don't want much do we?  I'm now gonna get ebaying to pay for new boiler here so we could get it up for sale if we need to! 

Axxxxxxxxxxx


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## Damelottie (Jul 26, 2005)

I did something similar Amanda. I used some of the equity from my house to use as the deposit for a buy to let mortage. Thats the same but the other way round isn't it?

Hope you manage to get it sorted xxxxxx


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## AmandaB1971 (Feb 19, 2006)

Yeah in my world that's the same thing Em!!  Did you have to do a further mortgage advance on your existing house Em or did they sort of "underwrite" the deposit with it or what?  Also did you use the same lender or a different one?

Axxxxx


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## Damelottie (Jul 26, 2005)

Hi Amanda

Mmmm - this is where is might be a bit different for us. Right then lets think what I did (thank gawd I had a good financial advisor ). Because it was a property I was buying to rent, I _had_ to take out a buy-to-let mortgage and thats with a different company to my _home_ mortgage company.

So I added the deposit onto my _home_ mortgage, and then used it for the buy-to-let mortgage.
When I spoke to my mortgage company about it, they wern't sure whether they would let me re-mortgage for that purpose - I think some stipulate it has to be for house improvements, but they agreed. If they hadn't, I'm sure it would have been possible to find a different company and re-mortgage with them.

I would imagine its doable - worse case scenario is that you have to apply for a buy-to-let mortgage, and a new mortgage for new home.

If you're going to rent out your house I would think that you probably _will_ have to change to a buy-to-let mortgage and those rates tend to be a little higher than standard mortgages (although they have come down a lot recently). There are clauses with them such as the rent you charge has to be a certain % above the monthly mortgage but the financial advsior will go through all that with you.

Ooooh its exciting 

LL xx


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## AmandaB1971 (Feb 19, 2006)

Thanks for that hun 

We're swinging between that and just keeping this long enough to do the jobs required and then getting it up for sale! I think we need to sleep on it because it's all only come about today so think our heads are spinning!   We also need to price up the new boiler for here as that really is the biggest thing stopping us from proceeding!

Definately going to see a Financial Adviser as that's the way forward to help us think more clearly as well!  From there we should get a "feeling" for whether we need to sell this to make it work or whether it would be wise to keep hold of it as an investment.

Now, so far as tenants are concerned how have you found that?  Are they high maintenance?  have you had long void periods where you've had the property empty?

Axxxxxxxxx


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