Second Mortgage

iamspecialized

Hi - Could anyone give me some advice please?
My situation is, I own outright my current house, totally mortgage free, this house is now up for sale for £90,000 But I have seen the house I really want to buy for £120,000.

I dont have enough money in savings for a deposit..... So my question is: Could I remortgage £20,0000 from my current house, use the 20k as a deposit with a different lender for house number 2 and pay both mortgages at the same time? (ive checked the sums and my salary covers the both mortgages)

Then when I sell my current home (maybe 6-12 months time) I would pay back the 20k remortgage and then the remainder, say 65,000 on house number 2.

Would this be an option as I really want house number 2 and it might not be for sale if I wait for my current house to sell.

I would really appreciate any advice or information.

Dave_Ham

Absolutely possible, although not an off the shelf solution so would suggest you speak with a decent broker to optimise your solution...

Good luck

iamspecialized

Thanks Dave, much appreciated.. Ill look for a broker and have a chat tomorrow :T

Dave_Ham

Most welcome - good luck...

holly_hobby

If you intend to let property no1, then your salary will only need to be proven as sufficient to service your new mortgage on property no 2 - plus the mge interest on prop 1 will be a permitted HMRC BTL deduction on rental income. If not, as you say, your income shall need to be sufficient to sevice both mortgages (which I guess thankfully isn't a prob from your post !

Only fly(s) in the ointment for cap raising on an unencumbered property (ie without mortgage), is no free legals and that a number of lenders require a 25k min loan (but not all - your broker will guide you to the best way to work things to best advantage).

Not sure which property you will reside in if you don't intend to let, but whichever one it is, make sure your blds insurance on that dwelling covers periods of extended unoccupancy (ie in excess of 30 days) - as standard B&Cs will be invalidated.

Anyhoo, have a chat with your broker and then if you need any comment, you know where we are !

Hope this helps

Holly

handytips

Talk to a broker, this scenario is right up the Halifax street.

iamspecialized

Thanks for the info guys.. spoke with my bank (Halifax) and went through everything, covering various deals etc and its all been agreed. I just need to view house number 2 and put in offer.

Thanks again for the swift replies!

holly_hobby

Thats great news .... HT was right on the button with Halifax

Well done and hope all goes well !

H