Can we get 2 mortgages?

kimmi

I think I already know the answer to this, but I'm going to ask anyway! Please bear with me as my knowledge of mortgages is very limited.

Have a property valued between £150-£160k with o/s mortgage of approx £75000, currently being renovated, but it won't be ready to go on market for at least a month, and then we don't know if it will sell although things are now picking up here!

Foolishly though, we've been to see & fallen in love with another property thats recently come on the market for £140000.

Obviously, there's no point in putting in an offer and messing the vendors around as we're not currently in a position to buy, as we know they want to sell asap, BUT is there anything we can do to release the capital in our current property as we don't have any spare cash to use as a deposit?

I was wonderiing if its possible to do the following?

Apply for a Buy to let mortgage on our current property of £115000 (75% LTV based on value of £155000). Rental income approx £500 month.

Then pay off the o/s mortgage & erc approx £78000 in total leaving us with £37000 that we can use as a deposit on the new property, and get a res mortgage of £105000 75% LTV

Our combined income is £40k, and have loan repayment of £160 month, current mortgage is £530 month repayment, we're also paying £320 per month rent as our property is being renovated. The new property we could move straight into, so the rent will stop, and the bills should be less - smaller property, lower CT and heating!

Have spoken to Britannia who we have the mortgage with, and they can't help, don't do bridging finance. and didn't suggest that we could do the above, so probably not do-able with them, but is there anything stopping us going to another lender?

TIA
Kimmi

herbiesjp

In theory you can do what you have put above.

However, you would need to see if the figures actually work out i.e if you could get a BTL for that amount, based on the current condition and expected rental income.

This will b ea very tricky, and difficult scenario to get agreed

So you will be better off speaking to a whole of market adviser, and they would be able to tell you very quickly if there are lenders that could make this happen for you

kimmi

Hi
thanks for the reply.
After a night's sleep, have decided to just get our house on the market once the kitchen & bathroom are installed, and price it to sell - someone can pick up a bargain if they're prepared to finish off the renovations.

And keep our fingers crossed the other property doesn't sell in the meantime!

Kimmi