Mortgage on 2nd House for short time

charlietwin

Is it possible to get a 2nd mortgage for a house that needs work doing to it if we could prove that we could make the payments for a set amount of time. Therefore we could live in our current house. paying our current and new mortgage, while work is done to our new house then sell ours when we move out. I realise that there is no guarantee we could sell ours etc but if push come to shove we could drop the price to sell it for no more than what we have left on our current mortgage so we definitely won't be out of pocket.

My evidence that we can make the payments is our savings account that we have been putting in for 2 years every month which will be used to form our deposit. The monthly payments of the new mortgage would be less than these monthly savings we have been making.

Is this kind of thing possible in the current climate?

Any help much appreciated.

The_J

Generally they will assume the worst and that you'll have to pay both mortgages til their conclusion. Your incomes will need to be able to support two mortgages simultaneously. I say generally because, dependent on figures, it might still be possible. Speak to a broker

CLAPTON

some actual facts might help

how much is the first house worth
how much the mortgage

how much is the second house
how much deposit do you have

what is your income
any other debts?

charlietwin

Thanks for your reply.

I suppose I can go and see my current lender too and see what they say. Ultimately, we will be getting another mortgage anyway in the next 12 mnths, a bigger one with a decent deposit, even if we have to sell our house before moving. Is this is a decent haggling position or does that not even come in to it with banks and building societies? Sorry if that's a stupid question, i don't have a clue on these things!

charlietwin

CLAPTON wrote: »

some actual facts might help

how much is the first house worth
how much the mortgage

how much is the second house
how much deposit do you have

what is your income
any other debts?

Our current house is worth around 115 with 95 on the mortgage.

2nd is on the market for 125k but looking to do about 40-50k of work. Decent area but run down so it should be worth alot more than the 175k when finished. Not that selling is the point as we want to live in it as our family home as close to schools etc.
Deposit of around 30

Joint income of 70k with no debt.

CLAPTON

well if you need to borrow sufficient for the work then you will need
to borrow an additional
125,000 + 40,000 less your deposit of 30,000 so 135,000

so you total mortgage would be 95,000 + 135,000 = 230,000
on properties worth 240,000 at best

this seems very unlikely

charlietwin

Would they not even entertain it for the short period while the work is being done, say 6-8 months? After that we will sell the house we are living in now and move in.

We have regular monthly savings for the last 2 years which proves we can cover both mortgages in the short term as the new mortgage won't be a bigger monthly payment than what we have been saving each month.

Dave_Ham

Get yourself a decent broker.

This can be done, but will need to packaged and presented in an appropriate manner to a suitable lender/s..

Good luck

charlietwin

Dave_Ham wrote: »

Get yourself a decent broker.

This can be done, but will need to packaged and presented in an appropriate manner to a suitable lender/s..

Good luck

Thanks for that!