Second Mortgage Help?

Vorlon

Hi,

First post here, wondered if someone could give us some help.

Due to the current round of NHS redundancies my wife will be taking a job in Exeter - about 300 miles away from where we live in Lancaster.

The plan is she will live in Exeter during the week so needs a flat. Renting seems both expensive and leaving nothing to show for it as we're expecting her post will be for at least 2 - 3 years.

We'd like to buy a second property, but we don't want to put out main home into the equation as we know I can afford the repayments on that and my job is pretty secure.

Can anyone advise on the best options?

I'm inclined to a 5 year fixed term repayment for financial security and actually getting something back, but the state agents are suggesting endowment only?

MortgageMamma

hi there

whether or not you can take a second mortgage depends on a number of factors but mainly your affordability, which needs to be assessed, the amount of deposit you have, as some lenders require higher deposits for second homes, and the actual lender you approach, as there are some that don't lend for second homes (don't ask me why!)

If you are just going to sell the second property when your wife returns to lancaster then interest only is a better option but you have to balance that with the risk that house prices can FALL as well as rise, and even though in the present climate it seems unlikely, there is a chance you could find yourself in a negative equity situation when you sell.

If you plan to KEEP the property and use it for investment purposes when your wife moves out, then a repayment mortgage would be an option for you.