Motgage Advisers
18-01-2007, 09:25 AM
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Without knowing the ins and outs of your specific mortgage, certainly in principle you can. The only catch here is with mortgage insurance which means if you get below 20% equity in the property, you need to pay it on your original property. As yours is no where near that, I can't see that being an issue.
I would be inclined to look at your contract and see if there are clauses/penalties for drawing but in principal, no reason why not.
I would be inclined to look at your contract and see if there are clauses/penalties for drawing but in principal, no reason why not.
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18-01-2007, 02:29 PM
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Originally Posted by cossie4i
Originally Posted by Dan
Plenty of Equity in it I should think Steve! 
About time you got another one seeing as you had the first one at 22! 
About time you got another one seeing as you had the first one at 22!
Steve.
18-01-2007, 02:33 PM
#12
Originally Posted by Dan
Originally Posted by cossie4i
Originally Posted by Dan
Plenty of Equity in it I should think Steve!
About time you got another one seeing as you had the first one at 22!
About time you got another one seeing as you had the first one at 22!
Steve.
Steve.
18-01-2007, 02:43 PM
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Im looking to get a mortgage with the missus very soon. So if there are any advisors on here drop me a PM please as i have a few questions . Thanks
18-01-2007, 11:13 PM
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Im a fully qualified mortgage advisor, yes you can raise money on your existing house for the Buy To Let. The mortgage Insurance referred to earlier is called MIG aka Mortgage Indemnity Guarantee, and is the lenders insurance that YOU pay for in case you default. In a nutshell if you were repossesed and there was still a shortfall left after property sold, the insurance company would pay the difference to the lender. BUT then the insurance company has got 12 years to collect the money they have paid out from YOU!
You generally only pay for MIG insurance if your borrowing more than 90% of your property value, although with some lenders it kicks in at 85%! and to be fair some lenders dont charge it at all. So all these people looking at mtg's with cheap interest rates, check for things like this as ive seen some MIG premiums as much as £2500!, so what appears to be cheap, their clawing this interest back in the MIG premium! Sorry, almost forgot you dont get a refund of this MIG premium as well if you change your mortgage regularly!
Anyone want any advise just pm me.
Rich
You generally only pay for MIG insurance if your borrowing more than 90% of your property value, although with some lenders it kicks in at 85%! and to be fair some lenders dont charge it at all. So all these people looking at mtg's with cheap interest rates, check for things like this as ive seen some MIG premiums as much as £2500!, so what appears to be cheap, their clawing this interest back in the MIG premium! Sorry, almost forgot you dont get a refund of this MIG premium as well if you change your mortgage regularly!
Anyone want any advise just pm me.
Rich
19-01-2007, 08:47 AM
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Yes, you can no problem.. Lenders will increase term but will take into consideration affordability, shouldnt be a problem unless it goes past your 65th birthday. Try and go for a flexi mortgage as well. where you can overpay with no restrictions, then any surplus you get from the rental income pay it into your existing mortgage each month and that will bring the term back down.
I.E Did you know that if you have a £50,000 mortgage over 25 years, by paying an extra £2 per day or £60 per month, you will reduce the term to 18 years and save approx £15,000 in interest!!
Rich
I.E Did you know that if you have a £50,000 mortgage over 25 years, by paying an extra £2 per day or £60 per month, you will reduce the term to 18 years and save approx £15,000 in interest!!
Rich
19-01-2007, 11:52 AM
#17
Originally Posted by HOT RGB
I.E Did you know that if you have a £50,000 mortgage over 25 years, by paying an extra £2 per day or £60 per month, you will reduce the term to 18 years and save approx £15,000 in interest!!
Rich
Rich
Took my mortgage out over 20 years to save interest and have also made over payments, now had the mortgage just under 5 years and have only 10 years and 4 months left
Steve.
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