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buy 1

forge_2
forge_2 Posts: 4 Newbie
in Mortgages & endowments
looking to buy another house need to borrow 110000 by using equity from main house as guarantee ,hope to sell on within 4/6 months.IS IT BEST TO TAKE OUT AN ADDITIONAL MORTGAGE or have heard of a type of flexible where by along side the main mortgage there is a facility to borrow an agreed sum of money at svr any advice thanks

Comments

  • Pobby
    Pobby Posts: 5,438 Forumite
    Hmmmm.May I ask why you want to do this right now?Is it for profit?
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    forge wrote: »
    looking to buy another house need to borrow 110000 by using equity from main house as guarantee ,hope to sell on within 4/6 months.IS IT BEST TO TAKE OUT AN ADDITIONAL MORTGAGE or have heard of a type of flexible where by along side the main mortgage there is a facility to borrow an agreed sum of money at svr any advice thanks

    The answer to your question is based on affordability.

    Some lenders will allow you to have two mortgages.
    Some lenders will allow you to remortgage for capital raising up to a maximum limit.

    If you post your existing and proposed situation, we would be able to help more.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • forge_2
    forge_2 Posts: 4 Newbie
    absolutely it needs work but once thats done its back on the market then on to the next one
  • forge_2
    forge_2 Posts: 4 Newbie
    JoeK wrote: »
    The answer to your question is based on affordability.

    Some lenders will allow you to have two mortgages.
    Some lenders will allow you to remortgage for capital raising up to a maximum limit.

    If you post your existing and proposed situation, we would be able to help more.

    JoeK
    mortgage at moment is 133k also tied in till 11/2007 penalties stand at 900POUNDS
    house value 440k either pay the penalties and get a deal on a mortgage for both
    properties or one just for the new house but probably wont get a deal
  • MortgageMamma
    MortgageMamma Posts: 6,686
    Part of the Furniture 1,000 Posts Combo Breaker
    Forumite
    why dont you just get a further advance from you lender and use that as a deposit for new property? if you could raise enough on your salary you could just use that money to buy it outright and have one big mortgage
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    forge wrote: »
    mortgage at moment is 133k also tied in till 11/2007 penalties stand at 900POUNDS
    house value 440k either pay the penalties and get a deal on a mortgage for both
    properties or one just for the new house but probably wont get a deal

    What are your incomes and what value is the new property.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • forge_2
    forge_2 Posts: 4 Newbie
    JoeK wrote: »
    What are your incomes and what value is the new property.

    JoeK
    45k incomes
    value house of aprox 125/130
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    forge wrote: »
    45k incomes
    value house of aprox 125/130


    Your joint income is not sufficient to borrow the £110,000 + £130,000 = £240,000 loan for both mortgages.

    This calls for creative thinking.

    My suggestion is that you raise £31,250 on you present property from a further advance from your existing lender and use this as the deposit for the other house.

    To buy the other house, you raise a bridging loan for the remaining 75% and pay interest only until the house is sold off.

    Hope this helps

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
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