Query about having 2 mortgages 30 October 2010 at 10:08PM in Mortgages & Endowments 1 reply 864 views

Lazarus78

Hi
I currently own a house by myself I have about 4yrs left on a 5yr fixed rate deal with Woolwich £104K - now at around £100K.

I am looking to move to a new house that I wish to buy with my other half and would be looking to get a new mortgage of around £170K. The property we might be looking at is about 200-210K and we have the rest in cash as deposit for one of the mortgages.

I was wondering if it was possible to move my existing mortgage onto the new property and extend it staying on my current mortgage. Then get an interest only mortgage on my current property?

I have looked at the figures and hypothetically can afford it just not sure if you are able to do what Im looking for.

Hope that makes sense. For the record Im not looking to keep my current property to let but I am hoping to move out of this home and have the opportunity to do it up before getting it on market.

Would be grateful for any advice

dimbo61

The cost on taking out an interest only mortgage for a short period of time while you "do up the place" is not worth it.
Do it up while you are living in it and then sell and put down a much bigger deposit on your home together or consider offset mortgage for new place.
Lenders are being very tough on income when you are taking on 2 mortgages