Second Charge or Remortgage - Advice needed

Pinkleylandii

HI

We have a property with 3 loans on it which is rented out at £625.00 per month. The property loans come to £125,000 and it is worth £205,000 approx. We have equity in it worth £80,000 upon which we want to release £25,000 to buy another property with guaranteed rental income (this is via a lease and is definite) which we will offset against the £25,000 we borrow. The problem is tie ins are £4,700 if we remortgage the lot. We thought we may take an additional secured loan on it for £25K so as not to pay tie ins but does the organisation we have the 3 loans with have a say in whether we can take an additonal loan? and can we get a excellent rate with no penalites if we pay back in say 5 years? Any advice would be appreciated.

silvercar

Can't you take the 25,000 on the property you are buying?

If you take a loan of 25,000 with a different company they will require a charge on the property. As one company already has a charge on the property they will only be able to have a second charge which puts them in the back of the queue should they need to repossess. Most mortgage companies would be unwilling to do this, certainly they won't do it at decent rates. Your current loan company won't be bothered as they have first charge on the property.

Your main options are to take a loan on the new property or to take an additional loan with the existing company on this property.

You should only lose the 4,700 redemption if you move the lot to a different company.

regularsaver1

i see you have added this thread to other other mortgages section

be careful because not every lender will lend thr additional to you if you do not live there.
The main mortgage lender you have will always be 1st charge - and then the others are further down the ladder. this will require the new lender permission, and for some of the charges to be postponed too.