Buying a second home with no deposit

leech79

Hi,
We have recently downsized and are mortgage free in a flat worth £190,000. We are now looking to buy a second home but without a deposit wondering if it is possible to raise funds from our existing property to use as the deposit on the second home. Has anyone done this or have any advice please? Many thanks:beer:

getmore4less

You get a mortgage on both places.

If you weere planning to do this you should have looked at it as part of the down size, would have been a bit easier to get a mortgage on the current place if you had.

An offsert would be a good option, get the money available but costs nothing till you actualy spend it buying a place.

Lending criteria will apply so LTV and iincome multiple on total borrowings

leech79

thanks for your help getmore4less. When you say it would have been easier to get the mortgage before (I was trying to save on fees and unneccessary interest payments), will I face problems getting a bank to lend me the money for 2 mortgages or will I pay more interest?

Conrad

leech - funnily enough Im dealing with just such a case right now. It's fairly, complex.

Some b2l lenders still want your income confimred.
TMW have some cheap rates but beware they are very fussy on property. They've declined 3 properties with us recently, 1 too near a pylon, the next for being within 100ft of a pub and lastly too close to a betting shop. On 2 of those I found out prior to the client parting with any money thankfuly.

Your existing property - be careful as some inexperinced lender staff / brokers will not realise that as you do not have an existing mortgage you MIGHT not quality for the usual free valuation and legal fees - someone did a complaint thread on here about this with Halifax I think.

CLAPTON

why do you need two mortgages ... could you not get the mortgage on your current house and pay cash for the second?

leech79

Thanks Conrad, we won't be letting the property out - we'll be living Mon-Thurs in one and Fri-Sun in the other. A bit like that damn show with Phil and Kirsty. Clapton - we will be spending about 275k on the new place so can't pay cash for the second.