2 Mortgages for 2 properties - short term - is this possible?

alstar1

Hi,

Myself and my partner have seen a house in our area - it is a reposession and as such is for sale for around 75% of the actual value. We were hoping to try and get a mortgage arranged for this quickly - going on the valuation we could get a 75% LTV mortgage so wouldnt have to put down a deposit at all and would get a decent interest rate

However, we currently have another property which I would have to keep on for a few months until it gets sold - therefore I would need to have 2 mortgages going at the one time - which at the moment we can afford ok so there would be no problems with expendible income etc etc

Is it possible to do this? we wont be renting out the other property - just keeping it until it is sold so dont require a buy-to-let mortgage or anything like that - just 2 mortgages on 2 properties for a short term until the other is sold

Thanks!

hermanmunster_3

Hi problem is that you will only get 75% on the actual price paid for the property not a valuation.

Not sure if you can have 2 mortgages.

[Deleted User]

I know nothing about having two mortgages at the same time. But I believe that mortgages are based on the price you pay for the house/selling price which is not necessarily what it is valued at.

alstar1

thanks guys - im confused now - ive always went with LTV meaning loan to value of property though? so if you borrow 80% of the value of the property the mortgage provider knows that there is 20% equity sitting?

ejc81

The LTV is based on the selling price though isn't it? So in this case where are you getting the 75% of valuation price from?

getmore4less

You can have as many mortgages as you can get.

You will need a deposit for the new place

What is the LTV on your current place?

Total borrowing requirements?

Income?

alstar1

the house is being sold for well under the valuation - it is valued around 100,000 but is being sold for 75,000 as it was a reposession - hence why i thought i could get a 75% LTV as the actual value in well in excess of the asking price

but if the mortgage goes on the purchase price rather than value then we are scuppered!

we can put down a deposit - around 5,000 so the total borrowing required for the new house is around 70,000

our current property has plenty of equity - around 15,000 but we may struggle to sell in time to get larger deposit for new property

having 2 mortgages would not stretch us financially - as both mortgages would not exceed 600 combined

thanks again

alstar1

for example - i see on the woolwich website that they offer motgages up to 65%, 70% of the value of your home - they do not mention purchase price

everywhere else seems to have 'price/value' but none actually state that the maximum LTV is against the purchase price and NOT the value?

getmore4less

True value is what someone is prepared to pay for it so thats £75k.

If a repo see if that lender will give you a mortgage for the place.

Reduce the price of yours for a quick sale.

Don't forget the buying/selling costs

alstar1

sorry folks - i'll settle this - lol - from the woolwich website

Loan to Value
This is the amount of money you borrow as a mortgage expressed as a percentage of the value or price of the property (whichever is lower).

d'oh!!

alstar1

thanks for the replies :T