Buying a second home with no deposit.

The_Mechanic_2

Hi All, first post..

Firstly I am completely useless with mortgages and finance in general, so please keep this in mind!
At the moment I live in a house with an outstanding mortgage of 100k I have been in the house for around 7 years but as my fixed term recently ended this is a new mortage taken out around 6 months ago.
At the moment I guess the house is worth around 140-150k
I am interested in buying another house to live in with my family and renting out the original house. This house would have to be around 220-230k to fit our needs.
At the moment I earn around 60k-ish after tax but I have no deposit at the moment to put into the new property.
What are my options? A separate mortgage or one mortgage covering both properties, as I said I'm pretty clueless!

Thanks in advance.

GMS

You would need a cash deposit for the new property which you couldn't raise on the current property given those figures.

You would need to sell the current property to achieve the deposit.

The_Mechanic_2

Thanks for the reply, how much of a deposit would be required, 10%?

Zero_Sum

The_Mechanic wrote: »

Thanks for the reply, how much of a deposit would be required, 10%?

probably need at least 10%, but obviously the larger the deposit, the better the rate you'd get. You can get 95% mortgages but the rates are a bit on the high side