Second mortgage suggestions

tonytheviking

My wife and I have a mortgage on a property for 340,000. The property is worth 400,000. We let it out, and the rent covers the interest on the mortgage.

We live in rented accommodation, but are keen to buy our own house soon.

I have just received a large lump sum - approx 450,000.

My wife and I have our eyes on another house to buy, but would have to borrow about 150,000 to seal the deal. I'd rather not sell the first property until the tenancy is over, as I don't think this is fair on our tenants. The tenancy ends in June next year.

Our salaries are 75k (me) and 45k (wife).

My question is, do you think we could borrow 150,000 in our situation, in just my wife's name? I would rather the mortgage was in her name as I have no life insurance (the lump sum was illness payout, but thankfully I am well enough to work - hopefully for many years).

Any suggestions for lenders, or mortgage brokers in the Birmingham area?

Many thanks,
T

Edit: I should have said that we plan to sell the first property next year and reduce the second mortgage with any profit made (likely 40-60k).

hillcats

When some people are struggling to get one mortgage, I think you may struggle to get a 2nd?

herbiesjp

In brief - it is possible.

There will be hoops to jump through, and criteria to meet, but there will be lenders who could do this.

You are right to seek the help of a broker, as you do not want to waste your time with lenders that will not be able to help.

tonytheviking

That is my concern. But I thought with such a healthy deposit, we would be ok. Perhaps not?

herbiesjp

You probably will find lenders to help.

The big deposit will help greatly.

There is no reason for it being in soles names either really - having life cover is not a requirement to having a mortgage.