I'm fairly certain that I've misunderstood the estate agent who gave us a valuation on our little one bed a week ago, as we were looking at a two bed in the area that was around the same money due to the rooms being smaller and the area a bit more "studenty". As it turns out, having viewed the two bed we've decided to stay put - for the moment.
At one point the Agent asked how much equity we had in our current place:
To keep the numbers simple (though I don't mind going exact if I need to later):
Our house value: £100k (don't I fucking wish in Brighton )
Equity in our house c. £44k.
He was seeming to suggest that with this % of equity, we could throw our place onto a BTL mortgage and still have the means to buy a nicer two bed than the one we saw using this equity. In relative terms, this two bed based on the imagined above figures would be c.£130 - £140k.
Between us, not as individuals, we earn a little over UK average as I'm a filthy stoodent again (albeit working p/t). The market value letting rent of our property would be around £200 per month more than we're currently paying on the mortgage for it.
So in conclusion, is there a mortgage mechanism in place that would allow us to buy a two bed while retaining our one bed on a BTL? Or have I completely misunderstood the agent? Or was he just talking nonsense to get me to sign on the dotted line as he wanted us to commit to them marketing our property for us there and then?
I hope all the above makes sense. TIA for any answers