Can we ignore our existing house/mortgage?

aliasojo

Forgive me if this is a naive or stupid question, it's just a hypothetical.

At present, we own a house that was our family home up until recently and where our son still now lives, along with his girlfriend. We are paying a smallish mortgage on it.

We had to relocate due to work commitments and are renting in the new area.

If we decided to buy in this new area and had enough of a deposit so we didn't need to free up any cash from our exisiting house, and enough monthly income to cover both mortgages, do we actually have to even tell the new mortgage company about our existing home and mortgage?

Mallotum_X

Yes, they will ask on the application form. Why dont you want them to know?

aliasojo

Absolutely no reason. Just thought it would be simpler to get a new mortgage as if we were starting from scratch.

holly_hobby

Yes you have to disclose the existing property - and your income shall have to be sufficient to service all commitments inc the existing mortgage.

You will also within 2 yrs of vacating propety no 1 have to advise HMRC (for CGT purposes) which property is to be classed as your main residence. (which may be later reversed/altered if your situation changes)

Hope this helps

Holly

Mallotum_X

If you have an accountant or advisor then get them to take you through the main residence decsion. You can pick either, and there may be tax advantages of one over the other.