Buying a second home and therefore having a second Mortage

PierremontQuaker03

Hi,
I am just wondering what can be done with this scenario.
I currently owe 30k on my current home of which I hope to pay off in the next six to nine months (I have a offset mortgage).
However, I am already thinking of buying a second home to eventually live in (and then rent my current home out), the house I want is for sale now and I dont think it will still be for sale in 6 months time.
Therefore, I am wanting to take out another mortgage to buy this house. I want to keep this 30k I owe on my current house separate as I want to pay if off, so I am not interested in adding this mortgage to a new mortgage for the new house or doing a buy to let......
Therefore would it be possible to take out an interest only mortgage with a new mortgage provider on this second home, interest only, for a couple of years and then move to a repayment mortgage - or in this climate is this too difficult and should I just grin and bare it and try and pay off my 30k mortgage and soon as and then go from there.
Any advice appreciated - thanks

dimbo61

This depends on the equity in your current home ?
you can get a BTL mortgage with a LTV of upto 70% with some BTL lenders.
Now trying to get an interest only mortgage on a new property with the current lending requirements might be difficult and how much deposit do you have ?
You need to speak to one of the nice " whole of market brokers who deal in BTL,s "
Good Luck

GMS

How much deposit do you have for the new place and what is the purchase price?

PierremontQuaker03

I want to avoid BTL - as you get stung on fees and the interest rates.
I dont have a deposit as I am wanting to pay my current mortgage off - I owe 30k on this mortgage, but have 20k savings which I want to use to pay off this 30k.
By the sounds of it I will have to pay off this 30k mortgage first...then save for a mortgage deposit on the new house..aaahhh

grey_gym_sock

you might to be able to get CTL (consent to let) from your current lender, which would let you keep the existing mortgage while letting the property. (but not to increase the size of the mortgage.)

CTL is only temporary, but might last long enough, if you're planning to pay off this mortgage soon.

kingstreet

You either remortgage the current property onto a BTL to raise the deposit for the new one, or use the offset savings to fund the deposit and ask your current lender for consent to let.

Your plan is a non-starter if you don't settle on a way of funding the deposit.