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Two Mortgages- Rennovation Project
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CatSplat
Posts: 7 Forumite
Hi
I currently have a property with about 50% equity. I was planning on buying a second property using half the equity in the 1st property as a deposit. The plan was to continue living in the 1st property whilst working on the 2nd which was a rennovation project, with the idea of, in a year or so, of selling or letting the 1st property and moving into the 2nd. The bank were initialy fine with this up until all the paperwork got sent off at which point they turned down the application on the grounds that it was a bridging loan. The total loan amount was well below the maxmum they would've been prepared to lend on one house and both properties would've ended up about 75% LTV.
I've misssed out on that property now but I'm looking into what options I would have in the future. Does anyone know any lenders who do this kind of thing? If it would make a difference I do have savings which could be used as a deposit on a second house rather than using equity from the 1st though it would be a slight stretch.
Thanks
I currently have a property with about 50% equity. I was planning on buying a second property using half the equity in the 1st property as a deposit. The plan was to continue living in the 1st property whilst working on the 2nd which was a rennovation project, with the idea of, in a year or so, of selling or letting the 1st property and moving into the 2nd. The bank were initialy fine with this up until all the paperwork got sent off at which point they turned down the application on the grounds that it was a bridging loan. The total loan amount was well below the maxmum they would've been prepared to lend on one house and both properties would've ended up about 75% LTV.
I've misssed out on that property now but I'm looking into what options I would have in the future. Does anyone know any lenders who do this kind of thing? If it would make a difference I do have savings which could be used as a deposit on a second house rather than using equity from the 1st though it would be a slight stretch.
Thanks
0
Comments
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you cannae remortgage 100% of your crib.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Huh? Both mortgages would only be for 75% of the properies' values.0
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