100% Mortgages

akpb123

Hi all,

We currently own a 2 bedroom appartment in South Wales and wish to buy a house because our new neighbours are causing havoc and my partner is at the end of her tether with them.

Our appartment is mortgaged with RBS so i was wondering if they would be receptive to the idea of increasing our borrowing to £220,000 (from £120,000) to enable us to finance a new property.

We would like to keep the appartment as a letting property.

I know we would need to tick the boxes with regards to incoming / outgoings and wages etc but if this was all in order would they consider it?

The 100% mortgage question is basically this: would they finance us by another £100,000 to buy a property (valued at (£100,000)?

Many thanks everyone

ryan86uk

If you had the initial capital, yes it's possible.

What equity do you have in your current house?

100% mortgage will be impossible.

akpb123

ryan86uk wrote: »

What equity do you have in your current house?

I dont know, but probably break even or slightly negative.

hcb42

you will need a deposit for the second property and the lending terms will most likely change it you have to take a BTL mortgage.

ryan86uk

akpb123 wrote: »

I dont know, but probably break even or slightly negative.

You will need a deposit. If you don't have equity or a deposit then you will be asking for a 100% mortgage, which you won't get.

In fact you are in a worse position than a FTB. Seeing as you could be in negative equity.

akpb123

Thanks Ryan.

I think the best thing to do would be to get the appartment valued. It is on a new development and is 4 years old. It is hard to estimate what its worth because there are 24 apprtments on the site and none have come up for sale yet.

I might be pleasantly surprised but i doubt it!!

ryan86uk

akpb123 wrote: »

Thanks Ryan.

I think the best thing to do would be to get the appartment valued. It is on a new development and is 4 years old. It is hard to estimate what its worth because there are 24 apprtments on the site and none have come up for sale yet.

I might be pleasantly surprised but i doubt it!!

Well, tell us a bit more about the property?

akpb123

ryan86uk wrote: »

Well, time us a bit more about the property?

Was this supposed to be 'Tell' as opposed to 'Time'?

ryan86uk

Ye lol, edited now ;-) ha

akpb123

Not a lot to tell really. Its a two bedroom appartment on a development with great transport links to Cardiff (Train station is ten mins walk away). It has its own off road parking but the only downside is that it is leasehold - £120pa ground rent and £60 per month to property management company who are quite good.

Any other info required?

We paid £125,000 for it and currently owe about £114,000.

ryan86uk

akpb123 wrote: »

Not a lot to tell really. Its a two bedroom appartment on a development with great transport links to Cardiff (Train station is ten mins walk away). It has its own off road parking but the only downside is that it is leasehold - £120pa ground rent and £60 per month to property management company who are quite good.

Any other info required?

We paid £125,000 for it and currently owe about £114,000.

It's difficult to say how much it will be worth really. Shame a few haven't been sold close by. How long does it have left on the lease?