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No road traffic passing by the house? Cleaner air and quieter too - that should be a selling point! (Sorry no help on the remortgage situation)
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I'm sure you know this, but just to flag that income tax is now payable on all rental income (i.e. not just anything beyond mortgage payment) which really does make this harder to achieve financially, but can be done I guess depending on circumstances....
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Has anyone any experience of remortgaging and renting their current home in order to buy elsewhere using the equity as a deposit on new place?
I seriously looked at this when my sale fell through. My conclusion, for my circumstances, was that although it looked like a good plan on the face of it when I looked at the numbers in detail it just became too risky.
Once tax was taken into account the returns weren't great. An empty month or two or a big repair bill would have wiped out any profits and I was also very exposed to property price and interest rate fluctuations.
There's obviously the increased stamp duty with buying a second property and it then becomes much more difficult to sell as you've either got to time it with the tenants moving out (and show it with tenants there) or take a hit on the rental income.
It seemed like a lot of effort and risk was my conclusion but the main thing is to have a very close look at the numbers.
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Has anyone any experience of remortgaging and renting their current home in order to buy elsewhere using the equity as a deposit on new place?
Some lenders don't like you doing this, and your mortgage broker might recommend that your remortgage reason is stated as improvements.
Your current lender may also instantly add on 1% for a let-to-buy mortgage. And then on top of that, interest only mortgage (because your yield on a capital repayment mortgage will be buttons) rates tend to be higher.
This is not financial advice etc...
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@scotts
Has anyone any experience of remortgaging and renting their current home in order to buy elsewhere using the equity as a deposit on new place?
Getting a bit peeved with the same feedback from viewers on ours saying the parking/footpath situation puts them off (the house was built pre cars and is on a narrow footpath about 30m from street parking) as all of this information is available on Google/Maps and in the meantime the places we're viewing are being sold.