mortgage advise please

sdoherty1000

We have £40,000 equity in our home that I am hoping to release and buy a second property to do up and sell. So, can I claim a 40,000 mortage on this property to use as a deposit and fix up cost on another house to sell? I thought I would seek advise on here before moving forward with any plans

Thanks
Steve

getmore4less

Not a lot of details but.

You cannot borrow 100% on a house these days.

your total lending would need to meet any income requirements.

My guess is NO.

_Andy_

As stated above, this isn't viable as you are after 100% lending on property one, which isn't available.

mlz1413

As others have said doubt this will work as you will not be able to borrow upto 100% on your current house and the 2nd property will be on a B2L basis so needing 30% -40% equity plus cash to do up.

You could always find out what your current mortgage co will lend you without changing rates so you know how much capital you can raise.


Questions to check before you go into developing:

Can you afford the payments on your mortgage plus extra borrowing if interest rates hit 8%+? (no point losing your own home for any investment)

Will the capital raised cover all renovations + 15% min towards unknowns + 6 months mortgage payments on developement (3 mnts to fix up and 3 mnths to sell is minimum time scales)

Will you be able to cope if the development doesn't sell or sells for less than it cost you?