What next? Can I buy another House?

BUTTERS

Hi all,

Looking for a bit of advice for mine and my partners future.

Purchased a property Feb 2007 at 130,000 with a 100% mortgage fixed at 6.25% with Natwest. Not a good rate I know. Well this rate come's to and end in December and we plan to go on the SVR at 3.99% and over pay what we were before therefore making overpayments of around 200 per month.

Is this a good idea, should I try to fix at 5 ish % or stay on the SVR. LTV is pretty poor and I think we are boarderline neg equity.

Now for the second question. The property questioned above is currently let and I rent another property in another city due to a change of job and not wanting to sell in this current climate.

What I am wondering is can I get another mortgage with my partner?

We currently pay 650-700 pcm and have £11,000 available for a deposit. Is is common or even possible for lenders to let people have a second mortgage?

It just doesnt make sense to me that I am paying just as much when I can afford another place instead of renting. Sorry for all the questions but I hope some of you can offer me some advice.

Thanks All.

poppy10_2

How much rental income are you receiving?

maninthestreet

BUTTERS wrote: »

Hi all,

Looking for a bit of advice for mine and my partners future.

Purchased a property Feb 2007 at 130,000 with a 100% mortgage fixed at 6.25% with Natwest. Not a good rate I know. Well this rate come's to and end in December and we plan to go on the SVR at 3.99% and over pay what we were before therefore making overpayments of around 200 per month.

Is this a good idea, should I try to fix at 5 ish % or stay on the SVR. LTV is pretty poor and I think we are boarderline neg equity.

Now for the second question. The property questioned above is currently let and I rent another property in another city due to a change of job and not wanting to sell in this current climate.

What I am wondering is can I get another mortgage with my partner?

We currently pay 650-700 pcm and have £11,000 available for a deposit. Is is common or even possible for lenders to let people have a second mortgage?

It just doesnt make sense to me that I am paying just as much when I can afford another place instead of renting. Sorry for all the questions but I hope some of you can offer me some advice.

Thanks All.

What is your joint income? Is the £650-700 pcm figure your mortgage payment, or the cost of renting your current accommodation?

BUTTERS

Receiving 550 pcm income from rental and our joint income is £3,800 pcm. The £650-700 pcm figure is what we pay at the moment for renting our second property.

Thankyou

poppy10_2

SO you're making a loss each month by renting out your current property? You're paying out £677 interest each month but only receiving £550/month rental income? Might be better to get rid rather than holding on to it.