Buying a second home with equity from my 1st home??

Tas_Advisor

Hi wonder if I could find some advice please…..

I currently have a mortgage with Bham Midshires of 50k remaining to be paid on my own house; it is valued at 111k.

I am planning on buying second house it is 83k.
I have deposit of 40k already

What I am planning to do is buy the second house so it is mortgage free.

i would just like my existing mortgaged house to be higher by 43k instead of the existing 50k mortgage (additional borrowing). So basically existing Bham Midshires mortgage to be 93k in total

I don’t want to go buy-to-let mortgage i just want to keep my existing capital and interest mortgage but get additional borrowing to allow me to buy the second house I have large family.

Is this possible or is there any other way??? My family will be living in the house so its not like im renting

any help would be great cheers

nick1977

Not sure on the details to be honest, but I would guess that whichever house you have the mortgage on will need to be the one you live in (hence "residential mortgage"). So if you plan to live in the one you currently have a mortgage on then there shouldn't be a problem provided Midshires are prepared to lend you the extra money against it. What you are looking for is roughly a 90% LTV so not sure if they will or not.
First step I reckon is to give them a call.

Hope this helps

**EDIT** Also, remember all the fees etc involved with buying a house and taking out a new mortgage. Probably looking at around £5k in total

herbiesjp

You are at 84% LTV

So you should find lenders that could offer you the £93k mortgage to allow you to purchase the second property mortgage free

Are you going direct to lenders?

You may want to get a whole of market adviser to help, just to make sure you fit criteria.

Some lenders have different tiers for their re-mortgaging, and different amounts for different scenarios i.e debt consolidation = 75% LTV max

Also your income and credit history would need to be good