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Is this possible?
jlpike
Posts: 75 Forumite
My apologies I bet this has asked 100 times before but I can't find anything.
Current house worth say 120k savings of say 20k and mortgage of 20k.
So have roughly 120k in equity and roughly 50% deposit
Can borrow 250k on salary.
I see a house I like for 220k chain free but I have not put mine up for sale.
Potentially I may get a good deal on this house.
What is the likelihood of by current (or another) lender giving me the mortgage on the new house at a good rate if I buy without selling mine and sell mine later to pay off a huge chunk on this new mortgage.
My guess is they would not care that I own my current house and I would need to borrow 200k with my 20k 10% deposit at a rubbish rate, then sell my current house and pay £100k (120-20) off the main mortgage assuming I can. But I would still have a rubbish rate on my 100k mortgage unless I instantly remortgaged again which I don't want to do.
Or could I remortgaged current house to 75% ltv get a good rate. Get a lower ltv on other house and a better rate. Then sell old house??
I know I could get a bridging loan but I don't want to do that
Does anyone have any advice???
Current house worth say 120k savings of say 20k and mortgage of 20k.
So have roughly 120k in equity and roughly 50% deposit
Can borrow 250k on salary.
I see a house I like for 220k chain free but I have not put mine up for sale.
Potentially I may get a good deal on this house.
What is the likelihood of by current (or another) lender giving me the mortgage on the new house at a good rate if I buy without selling mine and sell mine later to pay off a huge chunk on this new mortgage.
My guess is they would not care that I own my current house and I would need to borrow 200k with my 20k 10% deposit at a rubbish rate, then sell my current house and pay £100k (120-20) off the main mortgage assuming I can. But I would still have a rubbish rate on my 100k mortgage unless I instantly remortgaged again which I don't want to do.
Or could I remortgaged current house to 75% ltv get a good rate. Get a lower ltv on other house and a better rate. Then sell old house??
I know I could get a bridging loan but I don't want to do that
Does anyone have any advice???
0
Comments
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Why don't you convert your current mortgage to a buy-to-let one, and rent the property out, realeasing some of the equity, then take out a residential mortgage to buy the other one.
You then have 2 years to sell your old house before being hit for capital gains tax I think.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
I have considered this, I have rented houses out before and it is a pain. ill go and see my current lender and see what they say.
Its more the rate im bothered about. I could borrow another 50k on my current house at a good rate as i would still only be at 60% LTV then put £70k deposit on the new one and get an good rate as LTV would be around 65%. Ensure mortgage is flexible. Sell old house within 4 months and pay off the motgage on the old house and put any equity into the new one assuming no penaltys on either mortgage.
If I cant sell the house which I cant see being an issue even in todays market I could rent it out.0 -
Mortgages are based on affordability now, so it would depnd on whether you could genuinely afford it in their eyes.
How much if your monthly salary, current mortgage repayments(?), and other bills (debts/credit cards/loans)?
Have you looked into getting your house on the market and having it valued etc.?0
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