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    • Henry2016
    • By Henry2016 9th Feb 18, 1:48 PM
    • 3Posts
    • 0Thanks
    Henry2016
    Mortgaging a second property
    • #1
    • 9th Feb 18, 1:48 PM
    Mortgaging a second property 9th Feb 18 at 1:48 PM
    Good afternoon

    I currently own a house outright that's worth around 250k.

    I currently earn about about 29k a year and was looking to get a mortgage to buy another property.

    Question is how much of the first property can we take out to get a second home. The banks will only lend me about 90k so would I be able to use around 120k from the first house as a deposit?

    Not really sure how it all works
Page 1
    • kingstreet
    • By kingstreet 9th Feb 18, 1:55 PM
    • 32,870 Posts
    • 17,704 Thanks
    kingstreet
    • #2
    • 9th Feb 18, 1:55 PM
    • #2
    • 9th Feb 18, 1:55 PM
    Where will you live and to what use will the other property be put?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Henry2016
    • By Henry2016 9th Feb 18, 2:23 PM
    • 3 Posts
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    Henry2016
    • #3
    • 9th Feb 18, 2:23 PM
    • #3
    • 9th Feb 18, 2:23 PM
    We would live at the new property and our daughter would live in the existing property
    • kingstreet
    • By kingstreet 9th Feb 18, 2:41 PM
    • 32,870 Posts
    • 17,704 Thanks
    kingstreet
    • #4
    • 9th Feb 18, 2:41 PM
    • #4
    • 9th Feb 18, 2:41 PM
    Ok, so with no rental income from letting, the only money you can borrow is going to be based on what income you have declared.

    You can raise money in two ways, you borrow it, or you sell assets. There is no other way this can be achieved.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Henry2016
    • By Henry2016 9th Feb 18, 3:11 PM
    • 3 Posts
    • 0 Thanks
    Henry2016
    • #5
    • 9th Feb 18, 3:11 PM
    • #5
    • 9th Feb 18, 3:11 PM
    Okay so the banks will lend me 90k as it is. So the owned property is not worth anything in regards to a new mortgage?
    • kingstreet
    • By kingstreet 9th Feb 18, 3:34 PM
    • 32,870 Posts
    • 17,704 Thanks
    kingstreet
    • #6
    • 9th Feb 18, 3:34 PM
    • #6
    • 9th Feb 18, 3:34 PM
    No. What you can borrow is governed by affordability.

    The only use for an asset is what you can sell it for, or what you can borrow against it. On the latter, see the first sentence.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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