Another house as security?

stillscrapping

Hope someone can help me with a bit of advice.

My husband and I own a house with all mortgage paid off. We have recently moved to anothert part of the country and want to buy a house here for roughly the same amount of money as the 1st house is worth but don't really want to have to sell that one as our son is living in it and paying the bills. Is there any way we can raise money, (like an interest only mortgage) using that house as security. We also have about £20k in savings as a deposit. Both houses are worth about £120k btw. We do intend to sell it in the next few years but not just yet. We could then pay off the outstanding mortage.

Thanks in anticipation.

Dave_Ham

Absolutely.

Typically it would need to be a buy to let though, depending upon incomes, sons details wtc. you may get a 2nd residential.

Most buy to lets are broker only though, so you may want one to price this up.

Good luck

holly_hobby

You can't secure a charge on your first home, for a mge on your second if thats what you mean.

But, you could remortgage your ex-main residence to release equity to pch your next home - subject to staus and income and the lenders knowledge that it is not your main residence (with your son having permanent residency). If he is paying you any rent or anything representing rent, then this will have to be on a regulated buy to let mortgage - and you may have issues depending how long ago you held a mortgage.

But I think you'll have to throw a few more 1000s in to the pot, as you will probably looking at circa 75% on your ex-main residence, as it is unencumbered (mge free) and not your primary home.

If the figs don't stack up, you may be able to source an additional mge to assist the pch of your new home, of course your income and status will have to be sufficient to cover all commitments, inc any mge you source on the property your Son currently lives in (if its not a self funding buy to let arrangement).

You need to sit down with a whole of maket broker whom will walk you through the options, and best way of managing the exercise to obtain the best possible results reqd.

Hope this helps

Holly