Second mortgage

lulaloo

Thanks Pierremont, the difficulty with what you and others are suggesting with remortgaging my current property is that £50k was put forward by my dad as the deposit on this property, so it's not actually my money to be able to release, although on paper it looks as though it is. Good luck with your property purchase!

ScotlandM

Your dad gave the money to use a deposit to buy a house, will he mind so much which house it is used on? Having it stuck as equity in one or the other house makes little difference to him?

Your now 20k deposit of 85k house is 65k mortgage which is still 3.6 * your salary (Mortgage/salary = 65/18 = 3.6) This is high and you could achieve it but only without other credit agreements. You have a whole other mortgage which is already 3.77*salary.

You will need to refinance the first house into a commercial BTL so the payment of that mortgage doesn't come from your salary. Your salary is too small to own 2 residential houses (with 2 mortgages of that size).

Your second property of 85k will make the whole thing easier (needing less money overall). I would still take some of the equity from mortgage 1 to mortgage 2, to make sure a 75% LTV and you have less tax to pay with a bigger BTL mortgage.

If anyone uses terms, abbreviations or numbers you don't understand ask specifically. And remember to thank your dad for that 50k, nice