properties 2 into 1 mortgage

blackadder

i have :-
An offer accepted on a property that I wish to move to that is empty.
Sold , subject to contract, my current property with a small mortgage remaining to a first time buyer.
a second property that has no outstanding debt on it that is for sale but has no offers as of yet.

the cost of the new property is a little more than the sum of the agreed price on my first home plus the asking price of the second home.

so, i can't continue unless i can sell the second property ?
perhaps there is a way to mortgage the second property , even though i own it, to raise the difference in order to secure the purchase of the new property until it is sold ? this would mean having 2 mortgages on 2 properties that would excede the amount I am told I would be able to borrow on my current income.

can anyone suggest a route to securing the new property before I am able to sell the second house and any pitfalls or problems I might need to consider ?

thanks for reading and I look forward to reading your thoughts.

Ian.

silvercar

Your first mortgage on your current home gets redeemed on sale.

Can't you take out a mortgage on the new property that will be redeemed from the proceeds of selling your second property? As long as you get a mortgage with no early redemption penalties you should be OK.

blackadder

would a lender advance monies with a second property as security ?
I have no idea, I have asked around my friends and no one has been or knows of anyone who has been in this situation

silvercar

You can borrow money on any (solid) property. you have to declare if your living in it or letting it as different rates and rules apply. When you take out a mortgage they will do a valuation on the property that is the security.

blackadder

in this case, my family and I are neither living in nor renting out the property. It is empty. I will explore the possibility of a loan secured against it with a lender and see what kind of rate they will offer, although as I need very close to the asking price in order to secure the new property, I can't see that I would be able to get a secured loan for 98% of the valuation.