Dream house - is it possible

Wheeler01

Hi you people with great advice!

Will try to keep this brief.

My partner has a house on a 25 year mortgage of £40k that was taken out 15 years ago the house is now worth I.R.O £130k.

I have seen my dream home for sale at £275k. My partner does not want to sell his current property. Is it possible to use the equity in this property to purchase a 2nd house?

Between us we earn £48k. His credit history is great but I have a default dated July 10 for £340, apart from that everything is fine.

Am I living in a dream world or is getting this house achievable?

Any advice great fully received. Thanks

Thrugelmir

Do you want to be at risk for £315k of debt with interest rates on the rise and £400k of property if prices were to fall?

Why not save while your outgoings are low?

Dave_Ham

Challenging, but it is achievable.

You have a few solutions and would suggest you see a decent broker in order to ensure you maximise this opportunity.

You would either need to raise money on the mortgaged property as a let to buy, use this (not equity) as the deposit on the new mortgage.

Assuming you may be on a silly low SVR rate, you would need to arrange a consent to let with existing lender. You may then need to find deposit elsewhere as depending on lender are unlikely to advance you and agree to consent to let..

Would advise against using the in house mortgage advisor at the estate agents though, sure fire way for this to blow up in your face..

Good luck