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will we get a mortgage

hopingtobuy
Posts: 1 Newbie
Hi hope someone can help.
We already own a property which is rented out for another 6 months so we cannot sell it. There is £145000 of equity in it and it is curently valued at £250000 We have seen a property we want to buy which we think we could get for £250000. We have a deposit of 30000 without selling the other house. Our home which is rented out costs us £400 per month but we are overpaying that mortgage by £200 per month. We have joint income of £84000. Will we be able to get a 2nd mortgage to buy the house we have seen and are we liable for capital gains tax on the house we already own but cannot sell until next year.
Thanks in anticipation of some help.
We already own a property which is rented out for another 6 months so we cannot sell it. There is £145000 of equity in it and it is curently valued at £250000 We have seen a property we want to buy which we think we could get for £250000. We have a deposit of 30000 without selling the other house. Our home which is rented out costs us £400 per month but we are overpaying that mortgage by £200 per month. We have joint income of £84000. Will we be able to get a 2nd mortgage to buy the house we have seen and are we liable for capital gains tax on the house we already own but cannot sell until next year.
Thanks in anticipation of some help.
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Comments
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Dear Hopingtobuy,
I'm a full time Property Consultant so I hope I can offer a useful reply. In my opinion you should be able to buy in the current climate. With the assistance of a good mortgage broker who can advise you based on mortgages they are putting through presently they can ascertain whether you'd be best to approach lender X as opposed to Y.
If I were in your position I would order my three credit files and follow Martins Tips this month to ensure your credit score has the greatest chance of success - lenders are checking that your home address matches your Electoral Roll address and are being much more diligent when it comes to researching individuals as they have time on their side.
The survey is generally where I see things falling down at the moment. Many houses are being undervalued by surveyors for fear of recourse. Therefore before I get a mortgage decision in principal I would ask my broker to tell me which surveyors the mortgage company use. Then I would instruct them to survey the house and if it comes in at the anticipated price then ask for a retype (type the letter up for the mortgage company rather than addressed to me) and submit this to the mortgage company. If this was downvalued I would submit this to the vendor and renegotiate on this.
I'm also assuming that your rented property is rented on a Buy To Let mortgage and not a residential one, if it isn't you may want to get advice on whether to close that loop first. If it isn't remember that mortgages are sometimes 'portable' meaning you can move them to another property. So you could request a BTL mortgage for the original property and request to move the original mortgage to the new one.As the older one has lots of equity you only need a smaller mortgage and therefore are more likely to get it in the current cautious climate!
Finally if you can speak directly with the seller you could leave their current mortgage in place (assuming they have one) and agree to make their mortgage payments, just in the same way as you could pay your Daughter's mobile phone bill. That way you don't need a mortgage today but instead do this for 2-3 years until the cautious market relaxes. I use this method successfully to buy at the moment. Feel free to contact me to understand how this works.
Hope this is beneficial,
Phil:idea:Property Consultant
Birmingham, London, Brighton.0 -
If you have got consent to let (or a BTL) on your first property, and the rental income covers the mortgage payment by around 130% then you should be fine on the second purchase.
The lenders for the second purchase should "ignore" this property in the background as it would be classed as self financing
Your income is then more than enough to get the second mortgage agreed
There can be complications in setting this up correctly, so you might want to go via a whole of market mortgage adviserI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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