2 mortgages - 2 properties - short term?

alstar1

Hi All,

I currently have a mortgage on my flat - its fixed rate and the deal is up in October this year - up until then I would have to pay nearly £2000 to get out the deal - so I do not want to sell before then.

The problem is we have seen a house which is not likely to be on the market for long (good price etc etc) so we were wanting to try and get a mortgage sorted for it asap

we dont have any savings for a deposit - the original plan was to use the equity in our flat (around 15,000) for a deposit on our next house

in the short term i was hoping to get the mortgage for the new house and fund the deposit with an unsecured loan (or even secured on the new property) which could be cleared when the flat is sold using the equity (we would deffo have enough left over to clear the loan as deposit on new house would be between 7-8,000).

Do lenders allow this? keep two mortgages on the go until the previous property is sold?

it would not stretch us financially - as both mortgage payments would be manageable - particularly as we hope it would be short term - but even if our flat doesnt sell for 6-12 months we would still be ok

hope u can help!

Thrugelmir

The quick answer is no.

Suggest you focus in building equity in your existing property until such time as you are in a position to move.

House prices, interest rates could move in any direction at any time.

getmore4less

This is the second time you have asked this basic question and prior to these this was your post a few days a go

Hi All,

I'm looking for some advice regarding remortgaging my house whilist I also (rather foolishly) have a second charge secured loan as well

If I combine what I have as my mortgage along with the secured loan i am around 110% LTV on my house.

My mortgage itself only accounts for around 80% - I am coming to the end of my deal soon and was looking to remortgage

even though I have the secured loan on my house am i still able to go to another lender and get a 80% LTV mortgage? or will they take into account the additional borrowing i have secured against my house and take that off what I am able to borrow against the property

i.e. if my house is worth 70,000 and the second charge is 25,000 will they only let me borrow the 70,000-25,000? or will i still be able to borrow 80% of the property value which would be 56,000 - and then also have the additional 25,000 on top of that

hope this makes sense! thanks

And you want to get another mortgage

you are in negative equity in that post so where is the £15k equity in this thread.

Also it was a house now it is a flat

alstar1

it is not a 'basic' question to those who are on this forum for ADVICE - i.e. looking for answers to questions - you post is of absolutely no use whatsoever

when you are exploring different options when trying to buy a house then you may find that you need to ask different questions regarding different scenarios you may try and use to buy a property

"Also it was a house now it is a flat" this is irrelevant

the secured loan in the previous thread would be transferred to the new property or indeed cleared with proceeds from the sale of the flat and the unsecured loan kept on in its place - all depending on the sale price of the flat - however this was not part of this question - as i did not need advice in this area

as you can now probably see i am exploring different options - and have limited knowledge on mortgage rules etc - hence the similar questions

in any case this question looks to have been answered - so need to include quotes from previous posts - 'thanks' anyway