Securing A Second Mortgage.

former_student

I currently earn £17,000 from my main job and £3500 from a second job.

I also own a house valued at £123,000 of which I have a £52,000 mortgage still to pay, the house is currently leased out and I get £105 per week which covers the monthly mortgage of £430.

I have spotted a second house I would like to purchase, it costs £65,000 and I can pay a deposit of £5000.

Is there a possibility that I could secure an additional £60,000 mortgage?

herbiesjp

Where do you live if the first place is let out?

You will need a BTL mortgage if going to let out - You will need at least a 25% deposit.

You should be able to raise the funds for the deposit from the first property if you decide to definitely go ahead with the purchase of the second.

cushde

wow, i just came here ask the exact same question! Seem some really nice houses for less than 50k that would a be a great investment, but im not sure if i can get a 95% mortage, looking forward to the answers!

former_student

herbiesjp wrote: »

Where do you live if the first place is let out?

You will need a BTL mortgage if going to let out - You will need at least a 25% deposit.

You should be able to raise the funds for the deposit from the first property if you decide to definitely go ahead with the purchase of the second.

Thanks for that, would it be possible to keep my existing property and secure the second mortgage?

herbiesjp

As long as you fit criteria - then yes.

former_student

Thanks again for your help.

former_student

I spoke to my Mortgage lender, she advised that what I was proposing was possible via releasing some of the capital on my existing property and using it to pay the deposit on the second property.

However she did advise that the bank was not too keen on buy to let mortgages and even though this would be my second mortgage with the bank there would be charges of 1000 pounds.