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  • FIRST POST
    DarkKnight28
    Use another house as mortgage collateral?
    • #1
    • 29th May 10, 11:09 AM
    Use another house as mortgage collateral? 29th May 10 at 11:09 AM
    I wonder if anyone could help.

    My wife and I own a mortgaged property work approx 100k we are trying to sell; both have good stable jobs so no issues getting a new mortgage.

    We also have a mortgage-free flat worth approx 70k which we have been trying to sell. Selling it would give us a great deposit towards our next house. However we are having difficulty selling it, especially as other properties have come on for sale at lower prices. I don't need advice on 'well lower your price etc' as that is not my point.

    I want to know if we can sell property A, taking a 5% despoit with us towards the new house, and somewhow tell the mortgage company about property B being a 70k-ish asset - gaining a better rate/mortgage based on this asset?

    In business terms I know there are instances of using a property as collateral - anyone advise on the situation in the residential market?
    Thanks in advance,
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