2 Mortgages, One Property

jetman_2

Hi

I am tied into an Alliance and Leicester portable mortgage for the next years, but want to buy a new property in the coming months.

The maximum the Alliance and Leicester will lend me is £110,000 but ideally I would like more.

Can I transfer the Alliance and Leicester mortgage to the new property, and borrow more from a different lender - I would effectively have 2 mortgages for one property?

Thanks in advance for any advice.

bockster

you would have to find a lender willing to take 'second charge' on the new property. this may be difficult enough, and if you do you will pay a higher intrest rate for the privalege. second charge means that lender has less legal rights over the property, for example in case of reposession

jetman_2

Thanks Bockster, I'm looking to borrow an extra £30,000 or so with a different lender - will phone around and give it a go.

jetman_2

I have done some research, and it appears that the lowest apr you can get a second charge mortgage is around 7.9%, which is pretty heavy going. Has anyone out there found a lender who can setup a second charge mortgage on a lower rate?

Cheers