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Buying a house with second mortgage
Jessiepig
Posts: 211 Forumite
Hi Any good avice welcome here
We have the chance to buy a rundown bungalow and we would be able to do it up and resell at a good profit but we already have a mortgage on the house we live in. Is it possible to get a second mortgage to buy this property and then repay it when we sell .
We have the chance to buy a rundown bungalow and we would be able to do it up and resell at a good profit but we already have a mortgage on the house we live in. Is it possible to get a second mortgage to buy this property and then repay it when we sell .
£2 saver club, over £200 now:
1p a day increase saving. Paid up to middle April
:j
1p a day increase saving. Paid up to middle April
:j
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Comments
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Yes, you could get a buy-to-let mortgage if there is the (faintest) possibility you may rent it out when done up, or a commercial mortgage which may be at a higher rate. You may even be able to get a residential mortgage if there is a chance you could live in it when refurbished.
See a broker would be my advice.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Jessiepig wrote:Hi Any good avice welcome here
We have the chance to buy a rundown bungalow and we would be able to do it up and resell at a good profit but we already have a mortgage on the house we live in. Is it possible to get a second mortgage to buy this property and then repay it when we sell .
If you have enough equity in your home, you could look at a mortage advance from your current lender, which may work out cheaper.0 -
i agree with a BTL product, with no penalties if you are going to be selling it on quickly - but dont tell Lender this !! A good broker will help i would suggest that you do not use the EA's brooker0
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What if you do it and it doesn't sell, can you cover the mortgage in the medium term ? I would look into this very carefully, even Sarah Beeny hasn't bought a house in the last 2 years.0
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Hi Thanks for all your helpAngela_D wrote:What if you do it and it doesn't sell, can you cover the mortgage in the medium term ? I would look into this very carefully, even Sarah Beeny hasn't bought a house in the last 2 years.
There will be no problem selling this property. There is a high demand for bungalows where i live plus it is in a quiet cul de sac and within five minutes walking of lots of shops. Perfect location.
We only have about £120000 equity in our house so cannot go down that road.£2 saver club, over £200 now:
1p a day increase saving. Paid up to middle April
:j0
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