I am wondering if i would be able to buy a new house to live in but keep my current house to rent out. I own my current house our right. its a 2 bed terraced house worth about £150K. I could rent it for around £700 a month in this area currently. I am looking to buy a place worth about £180k if possible. I have a cash deposit of about £20K at the moment. One problem is i dont earn much at the moment as i work for myself in my own company i started and can only draw £600 a month wages. I have a lodger who pays me £350 a month who would move with me but i dont know how long i can bank on this lasting so probably best to not include this into the sums.
Has anyone here done this. Do you think looking at the about it is worth exploring at the moment or should i wait until i am earning more or have a larger deposit? Also how would it work if it is possible. would i be mortgaging my old house fully plus bit of the new house to make up the difference or would i be mortgaging the new house and using the old house as a guarantee?
Has anyone here done this. Do you think looking at the about it is worth exploring at the moment or should i wait until i am earning more or have a larger deposit? Also how would it work if it is possible. would i be mortgaging my old house fully plus bit of the new house to make up the difference or would i be mortgaging the new house and using the old house as a guarantee?