2nd home, well flat actually -advice please

alflavor

Hi, we are in the position where, if I take a job that is about to be offered to me, we'd need a flat 70 miles away for mid week stays, 3-4 nights a week typically.

In our main home our mortgage is at approx. 130K, valued at 250K, with 17 years to go, making 150pm overpayments regularly.

To get a flat we'd need to then borrow up to 125K, but at the moment only have about 5% deposit, which isn't enough, as it seems we need 10% minimum.

Spoke to Natwest about releasing money from the mortgage for the 2nd flat purchase - they would release money, but wouldn't allow it for the flat purchase as it's then seen as a 100% loan.

Could we take money out of the current house (Natwest) and then use it as a deposit on the 2nd flat?

Financially we can afford both, we have no debts, <£500 on credit cards which are often clear. Our total take home pay is going be £6000 a month if I take this job.

Or do we rent for a year, and save the deposit required for the 'citypad' ?

Is there anyone out there who has been in a similar situation who can help perhaps?

opinions4u

Why not rent?

It sounds like you could release equity for deposit and borrow for the rest, and I'd expect one of the brokers to confirm this, but renting gives you more flexibility if you don't like the area or change jobs again.

Thrugelmir

Is it worth buying a flat for 3/4 nights a week?

A small friendly B&B would give you a discount for a regular booking.

mildred1978

Thrugelmir wrote: »

Is it worth buying a flat for 3/4 nights a week?

A small friendly B&B would give you a discount for a regular booking.

Excellent suggestion. Don't forget all the running costs a 2nd flat would bring.

bluebird

:T

Thrugelmir wrote: »

Is it worth buying a flat for 3/4 nights a week?

A small friendly B&B would give you a discount for a regular booking.

:T:T:T:T:T:T:T:T Totally agree, why get more debt if its not required.

Owain_Moneysaver

A part-week room rent in someone's house would probably be cheaper than a B&B and you'd have access to a kitchen. If it's London then there are plenty of people who want some income from a lodger during the week but not at weekends.

Or if the work has a parking place and a shower, what about a cheap campervan??

If you are buying or renting a flat to use 3-4 nights per week, then that means that for 4-3 nights of the week you are paying for it but not using it.

Dave_Ham

Too many variables to be detailed, but this can be done in quite a straightforward manner.

Suggest you get in touch with a decent broker as some lenders do not fancy these sorts of deals..

Good luck