Any Advice Needed

mrchest

Have a £10,000 mortgage left to pay on a £135,000 house, due to mass overpaying in recent years, want to buy a larger house for about £200,000 and keep my current one to rent out for around £580 PM but do not have any savings for a deposit.

Thought I could use my reserve on my current mortgage from Nationwide as currently only paying the base rate but believe I can not do this as I will have 2 mortgages ? Was wondering what the cheapest way to raise a deposit would be ?

Sorry if this is a silly query but I'm not up to speed with mortgage possibilities.
Just for info have been informed can get a £195,000 joint mortgage as have no other debts.

JA1000

"Just for info have been informed can get a £195,000 joint mortgage as have no other debts."

Keeping the current house?

mrchest

Keeping the current house?

Then would be able to have £185,000, as I owe £10,000 still.

Was trying to work out was it better to make £580 PM - fees, up keep etc, by renting out my current house, and getting a loan for the £10,000 to finish mortgage + £20,000 for a deposit. (I'm sure getting a loan for £30,000 will lower the amount of mortgage we can get , as long as its not below £180,000, should be ok)

OR

Selling up or £135,000 and just having a mortgage for £75,000.

happybroker

get some advice from a good whole of market broker (friends & family are a good place to start for a recommendation) as to the best way to proceed and also go through all of your options in detail.

Untill you have all of the figures in front of you it will be difficult to decide which way suits you best.....there are several ways to make this work.

mrchest

You say there are several ways,
would I be able to draw down on my overpayments on my current mortgage to get my deposit rather than getting a loan that will be at a far higher interest rate ?
Basically can I have 2 mortgages running at the same time?