Alliance and Leicester First Plus Mortgage problem

greefkid21

Hi

I have recently viewed a new build property which my wife and I are interested in purchasing.

The problem we have is that we currently have a 100 % mortgage with Alliance and Leicester along with a secured loan in the house we currently live in which looks like it could break even or marginally be in negative equity if we sell.

When speaking to the builders they have advised us that if we could rent our current property out we could become eligible for the New Buy scheme where they have said that if we have a 5% deposit (which we could get) they would put the other 5% to.

I was told by A&L that as we're on a first plus mortgage we would have to pay off the secured loan before we would be able to put the mortgage on a buy to let mortgage.

As we don't have the £11k to pay off this loan I was wondering if anyone has been in this position before who have found a way to get around this?

Thanks

Simon_gloster

Are you looking for a 90% new build and you current home + secured loan = -ve equity?

If so, I would sit down and think about the worst possible outcome in 2017.

Can you guarantee on this public open forum that your home would be rented out 100% and you not put 1p to service it?

If not, think of reducing your current debt first irrespective of your circumstances.

You could easily have two -ve equity homes in 2015. What happens when you want to retire? Do you want this grief at that age?

brit1234

greefkid21 you are looking at financial suicide, think and step back from the cliff edge.

:eek: