Will bank accept a 2nd home mortgage whilst I am trying to sell the first?

horngkai

I am looking into moving and have enough deposit to put down for it. However, I was wondering whether lender will approve a mortgage whilst I have not sell my current house yet despite having enough deposit and able to repay mortgage for both properties for the time being.

The reason for this is to be able to move sooner rather than later without needing to rely on the sale of my current house.

Any advise will be much appreciated.

The_J

If it fits their affordability calculations no reason why not.

horngkai

the affordabilty calculator, is this the same as the 'how much can I borrow' calculator?

The_J

Yes, bear in mind some lenders will want you to enter your mortgage payment in a box. Others won't but the figure it returns will have to cover the balance of both mortgages together.

horngkai

hm.... that might makes it a little difficult. both houses will add up into the region of around £220-230k, which is slightly more than what most bank calculators will lend me. Especially considering my stoozed £10-15k in 0% credit cards Presumably bank wouldn't ignore those as its 0% would they?

Dave_Ham

No chance...

If you post your individual incomes, deposit, mortgage value and proposed new purchase price and monthly mortgage payment and any other hp

This should allow one of us to quickly identify the scope of this plan..

Good luck

horngkai

income £56k
deposit £36250
New purchase price £145k
Current house remaining mortgage £114k
current house mortgage payment £520
Loan/HP £500
Credit card balance £15000 (can repay them all if I want to)
minimum repayment £300

Dave_Ham

Would think this is achievable, although do not think the new mortgage will be at market leading rates..

You will need to stretch to the limits on bank multiples...

You will need to repay credit commitments before completion for sure, although banks often frown upon high balances even if stoozing or 0% generally.

Santander for one still include the cards as part of your affordability for sure, so definitely give them a miss..

horngkai

oops... got my current house mortgage wrong. Its 114k rather than 141k.

sounds like if I want to do it this way, I would have to go through a mortgage adviser/broker to make life easier?

Voyager2002

The standard solution is a "bridging loan".

Dave_Ham

Probably better for a broker as some banks also do not like 2 residential mortgages, it should be relatively pain free but you may need to take a slightly higher new mortgage rate for 2 years...

What is your plan for your existing property?

If you obtained consent to let, you would be able to achieve top tier rates on the new purchase (subject to a few other variables)

Good luck