Would 2nd house be possible? 2 mortgages

rover25

Hi, my partner and I bought a house 2 years ago (at peak:o ) but are really not happy here. I was brought up in a detached house in the country and although I thought I wouldn't mind living in a park in a town, I absolutley hate it to the point that it is affecting my happiness and our relationship.
We bought with 100% so def in negative equity so no way out there.
Recently seen a lovely detached house in the country for £85,000 and was wondering would any bank entertain the idea of giving us a 2nd mortgage (with 10% deposit) to buy this.
We pay approx £550 per month each covering mortgage, rates, insurances etc.
This leaves me with approx £1,200 per month and my partner with £650 per month.
Would affordability be taken into account? We will probably rent a house in the country and try to rent out our own in the next year or so anyway. mortgage on 2nd house would be the same as renting a 2nd house. (approx £450 per month)
Am I being totally disillusional re 2nd house

porscheking

I'm very interested in your thread and don't mean to hijack - in fact the answer to your question could also help us. My wife is from Belfast and we'd like to buy a 2nd home over there whilst prices seem keen. This would save us staying with family & friends on regular trips back there. We won't be renting it to anyone. Perhaps we can get both our questions answered at once.... What are our mortgage options? we have a 30% deposit.

Kavanne

How much is your actual mortgage repayment each month at the mo? And what other debts do you have?

You would need to get permission from your current mortgage lender to rent out your existing house.

rover25

Our repayment is £919 per month so we both put £550-600 in per month to cover mortgage payments, insurances, rates, etc
We have no other debts.

Ian_Griffiths_Halifax

I think you've got a good chance. It's just the 90% mortgage that may be a problem. There are lenders who will do 90% mortgages, but look into what you will get as a rental income from your existing property first, as they will look at this as being a self funding mortgage.

The affordability of your mortgage on the £85k property shouldn't cause you a problem, but speak to a Whole of Market Broker to help you with this.

Robert_Sterling_3

Rover25

I very much sympathise with the fact that through no fault of your own you now own one property with negative equity.

I may be wrong but to me it does not look a good idea to buy another property and risk having two houses in negative equity.

Nevertheless I wish you luck in your efforts to sort something out.

Ian_Griffiths_Halifax

Robert, you are right that they may be looking at buying a 2nd property which may also go into negative equity (we are expecting a further 10% drop), but there is more to life than the equity in a home. Equity means nothing until you want to sell it and in this case they aren't looking to sell, they are keeping the current property, and their next one will, HOPEFULLY, be a home.

Robert_Sterling_3

Ian that is why I am so sympathetic.
However being sympathetic does not mean that I will encourage them to go from a bad financial situation to a worse financial situation. This is a time to suffer the slings and arrows of outrageous fortune and await a brighter tomorrow not to double your exposure to negative equity.

Ian_Griffiths_Halifax

In many cases just now, I'm telling people not to buy just yet. Renting is a cheaper and safer option for many just now, but for some it's not an option.