Quick Equity Question

[pawprints]

I currently have one IP and one PPOR. I am thinking of purchasing a new PPOR and making the current one my second IP. I recently refinanced and so valuations were done only 6 months ago.
Can someone please advise if basically I can use the equity (and approx how much to expect) as a deposit on my new PPOR.

Situation:

IP - Valued at 225K, mortgage 176K
Current PPOR - Valued at 280K, mortgage 179K.

Both with ING (separate loans)

Looking to purchase new PPOR in 300-340K bracket.

Many thanks in advance. Just trying to get an idea whether I should investigate going down this path or forget it.

 

[Rolf Latham]

certainly enough there with a 90 % lend or so

ta
rolf

 

[pawprints]

Would it still be enough just with the PPOR figures alone? (forgetting about the equity in the IP)?

So for the current PPOR 280K at 80% = 224K less 179K would give me 45K to play with?

 

[Shahin_Afarin]

Get a few upfront vals to see where you hold the most equity and try and save as much as possible on the LMI.

How long are you planning to live in the new PPOR?

 

[Shahin_Afarin]

Would it still be enough just with the PPOR figures alone? (forgetting about the equity in the IP)?

So for the current PPOR 280K at 80% = 224K less 179K would give me 45K to play with?

Yes and don't forget to keep the loans and properties standalone.

 

[pawprints]

Get a few upfront vals to see where you hold the most equity and try and save as much as possible on the LMI.

How long are you planning to live in the new PPOR?

I would be looking at living there at least 10 years.

 

[Jamie M]

If you think it will be an IP after 10 years then best to set it up as interest only with an offset to preserve the principle.

Cheers

Jamie

 

[Aaron_C]

Looks pretty easy.

 

[jonmardell]

If you take your current properties up to 80% then you can get around 44K out for the deposit towards the new property. You would borrow around 90% against the new PPR with enough money left over to pay for costs.

I currently have one IP and one PPOR. I am thinking of purchasing a new PPOR and making the current one my second IP. I recently refinanced and so valuations were done only 6 months ago.
Can someone please advise if basically I can use the equity (and approx how much to expect) as a deposit on my new PPOR.

Situation:

IP - Valued at 225K, mortgage 176K
Current PPOR - Valued at 280K, mortgage 179K.

Both with ING (separate loans)

Looking to purchase new PPOR in 300-340K bracket.

Many thanks in advance. Just trying to get an idea whether I should investigate going down this path or forget it.

 

[Shahin_Afarin]

I would be looking at living there at least 10 years.

Ok. I would start getting some upfront vals ASAP so I have a good idea of the equity available. They are free and most lenders provide it.