Is it possible to buy 2nd house with negative equity

rover25

Hi, I am wondering if it is even a possibility at all to buy a 2nd house if the house we currently own is in negative equity?
We have a mortgage of apporx 160,000 over 30 years. We hate the house and we are prob about 70,000 in negative equity. Purchased house for 180,000 at height of property boom here in NI.
Anyway we are expecting to come into some money in the next few months, figure of £30-40,000.
I have previously overpaid some on our current mortgage but am so reluctant to put this extra money into our current house as it would still not put a dent in the outstanding amount. We have spent 6 years here and I am really at my breaking point with it for a number of reasons.
We were thinking of looking into a 2nd cheap house in the area we wish to move to, priced at a maximum of 80-90,000 leaving us with a mortgage of 40,000. Would any lender even look at us or is this complete pie in the sky? We have a combined income of approx 60,000. Many thanks
I

kingstreet

You need to ask your current lender if it will grant you consent to let. If granted, you then look into a new mortgage, possibly with another lender for your new purchase. The lender may "tax" your income with the cost of the existing mortgage. Others will ignore a let property/mortgage in the background.

rover25

Thanks for the reply. What happens if they dont consent to let? Is it ok to leave the property empty?

Thrugelmir

You can't walk away from property one. As you are contractually obliged to repay the debt. Better to tackle the issue head on. Than pretend it doesn't exist.

kingstreet

rover25 wrote: »

Thanks for the reply. What happens if they dont consent to let? Is it ok to leave the property empty?

As long as you carry on paying the mortgage, you can leave the property empty. Check your buildings insurance first. You may need to change to "unoccupied" cover.

rover25

We might just have to do that and leave it empty,if they dont consent to let. We are not wasting any more of our lives in this current house. We figure buying the 2nd property with a 40000 mortgage will be about 200 cheaper than renting per month.