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    whistlestop
    Remortgage 1st home to buy 2nd home outright
    • #1
    • 11th Sep 13, 2:12 AM
    Remortgage 1st home to buy 2nd home outright 11th Sep 13 at 2:12 AM
    Hi folks

    I'm looking for some advice on how I could go about raising money from one house to buy another outright, or possibly get a 2nd mortgage?

    I currently own a house valued at 260,000 with a 126,000 mortgage. I'm currently renting it for 900 per month with permission from my lender.

    I've recently been offered another house in need of renovation for 60,000. I believe with minimal expenditure it'll be worth around 100,000.

    I'd like, if at all possible, to re-mortgage (or otherwise raise finance on) the 1st house to buy the 2nd outright i.e. re-mortgage 1st at 186,000 (original 126,000 + additional 60,000) to pay off original mortgage and use the additional revenue to buy the 2nd.

    The problem I'm up against is my relatively low income of 30,000. My current lender will not allow me to borrow the additional 60,000 and others I've investigated will not consider the rent I take in as income until I have several years of accounts.

    I understand their concerns, but I believe it to be a wise investment decision - for the 60,000 I will gain an asset worth 100,000 which could be used as additional security.

    Any advice would be greatly appreciated!
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