borrowing more on current mortgage to buy another house

snowmen

borrowing more on current mortgage to buy another house

posted this on mortgage-free board but probably should have been posted on here instead!

hello there,
not sure if you can do this or not so just need some advice....

currently have a mortgage of £15K and our property is valued at £135K by our current mortgage provider of Nationwide.
I have been told that we can borrow up to 85% of the value of our house (this needs to include our current outstanding mortgage).
We are looking into the idea of buying a house for our mother-in-law that is closer to where we live and the one we are interested in is on the market for £95K.

Can we borrow the money on our existing mortgage to buy this additional house leaving us with a total outstanding combined mortgage of £110K? We are currently on the old nationwide BMR now sitting at 2.5% and if we had to take out a new mortgage for the property we would have to settle for a higher rate and also find a 15% deposit so obviously borrowing on the existing mortgage would be the best if we could do it.

Any help would be gratefully received!

brit1234

I would doubt it with prices expected to fall over the next few years, it would put you into negative equity or close to it. Thats assuming your valuation is correct and not in reality lower.

getmore4less

Can't the MIL contribute to the cost in some way?

Remember if she is on benifits, living in a property owned by close family can impact these.

happybroker

snowmen wrote: »

borrowing more on current mortgage to buy another house

posted this on mortgage-free board but probably should have been posted on here instead!

hello there,
not sure if you can do this or not so just need some advice....

currently have a mortgage of £15K and our property is valued at £135K by our current mortgage provider of Nationwide.
I have been told that we can borrow up to 85% of the value of our house (this needs to include our current outstanding mortgage).
We are looking into the idea of buying a house for our mother-in-law that is closer to where we live and the one we are interested in is on the market for £95K.

Can we borrow the money on our existing mortgage to buy this additional house leaving us with a total outstanding combined mortgage of £110K? We are currently on the old nationwide BMR now sitting at 2.5% and if we had to take out a new mortgage for the property we would have to settle for a higher rate and also find a 15% deposit so obviously borrowing on the existing mortgage would be the best if we could do it.

Any help would be gratefully received!

provided your income and credit status stacks up the answer to your question is yes.

Mrs_Bumble

As Happybroker says as long as your figures stack up Nationwide will allow this as long as you don't go over the 85% LTV.

Check your valuations on a site like https://www.zoopla.co.uk