Mortgage for 2 properties

thanks

Really appreciate your opinions.

I would like to upgrade from my present house (value about 150K with no mortgage) to a bigger one for 350k. I have found a house I like and for its deposit and renovation, would like to release capital of about 70% of my present house and then I would like to do minimal renovation of my present house and sell it. What is the best way for acheiving this? I was planning to take a 'Buy to let' on my present property but as I am planning to sell it ASAP, that seems to be costly option,

Thanks for your advice

dimbo61

Do the work that is needed on your current house and sell it first then put down a 30% deposit and use the rest to complete the renovation you want.
Ha to be much cheaper than taking out a mortgage on your existing place only to pay it off in 12 months

Dave_Ham

Hi there,

There are solutions here (cheaper than the let to buy option) but way too many variables to know if possible.

Get a decent, recommended broker and they will put this together for you.

Age, income, credit scoring, location, other financial commitments will all be variables depending upon your circumstances..

Good luck

thanks

dimbo61 wrote: »

Do the work that is needed on your current house and sell it first then put down a 30% deposit and use the rest to complete the renovation you want.
Ha to be much cheaper than taking out a mortgage on your existing place only to pay it off in 12 months

I agree what you suggest is the best option but if possible, I would like to avoid a chain especially in this slow moving market.

Conrad

You can organise a residential remo on your current home, perhaps something like a variable rate with no penalties. Care is needed as not all lenders will allow capital raising for the purpose intended.

Then you can buy the new one using a resi mortgage with a lender that allows a second mortgage in this manner.

Care on the lender for the new property as some will want written proof from the lender that the current home has been let / can be let, so you might want to avoid those lenders.

It's quite complex but deffo doable subject to the rest of your status of course.
You find find a 'fee free' broker for this, but as ever, being cheapest is certainly not an indication of ability. A decent experienced broker is likely to charge I think - afterall what if you change your mind halve way through (trust me, happens all the time - people suddenly have a freind or someone who wants to buy the existing home etc etc).

thanks

Dave_Ham wrote: »

Hi there,

There are solutions here (cheaper than the let to buy option) but way too many variables to know if possible.

Get a decent, recommended broker and they will put this together for you.

Age, income, credit scoring, location, other financial commitments will all be variables depending upon your circumstances..

Good luck

Thank you for your input. I am going to see a Mortgage advisor but would like to have some idea about what are the options available.

I have 25% deposit money without raising any mortgage on my present home but unfortunately the new house will need about £25000 for refurbishment. I have good credit history and enough salary. I am 50 years old and live in Berkshire and has no loans or other major commitments,

Thanks for your advice. Can you please let me know the other options other than 'Let to buy' Mortgage ?

Dave_Ham

Funny I have just switched on for half an hour and you posted this direct question...

To be honest, it is hard work to give tailored solutions without knowing all of full information, but here are some potential considerations..

If you have good income and 25% deposit, remind me why you do not just buy the new one on a mortgage with no penalties and then pay off after sale of other property?

Take your point about not being in a chain.

Word of caution on your age and some lenders restrictions, given that interest only is not as easy to obtain. Your mortgage free property should suffice, although again not all lenders accept this or you are still measured on affordability based upon repayment to x years old..

Bridging finance can be expensive, but not always stupidly expensive and again could be a potential solution subject to many variables...

thanks

Dave_Ham wrote: »

If you have good income and 25% deposit, remind me why you do not just buy the new one on a mortgage with no penalties and then pay off after sale of other property?

.

Thankyou,

As you said I can get mortgage for the new property with my deposit but I need more money for refurbishing the new property and some for tidying up my present property before putting it on the market for sale. Are there any MSE option other than 'Let to buy' please?

Dave_Ham

Put less than the 25% down on the new purchase and use the remainder for the refurb?

Subject to income, you may be able to get 2 residential mortgages although you would need to tick a few boxes and manage a few hurdles...

Dave_Ham

0% credit card for purchases until the existing property sells?

thanks

Dave_Ham wrote: »

Put less than the 25% down on the new purchase and use the remainder for the refurb?

Subject to income, you may be able to get 2 residential mortgages although you would need to tick a few boxes and manage a few hurdles...

so it is possible to get 2 residential mortgages. that is completely new to me. Thanks really.