Second mortgage

JimS82

Hi Fire fox, the second property is actually half the price of my current property. I have calculated that I can afford it and would actually be better off but it is whether I can actually obtain a mortgage at this point in time.

Fire_Fox

JimS82 wrote: »

Hi Fire fox, the second property is actually half the price of my current property. I have calculated that I can afford it and would actually be better off but it is whether I can actually obtain a mortgage at this point in time.

You likely cannot because you have a history of arrears, and why would you want to? Two mortgages to cover and a family to care for, what happens if your tenant doesn't pay rent or trashes the place? Even if you live nearby there is little you can do, you cannot enter their home, you cannot rock up unannounced and harass them, you cannot evict without a lengthy legal process. Tenants are well protected.

Honestly you are better off sorting yourself out financially, then moving into rented when you can instead of addressing debt with more debt, it's not the solution. If you are repossessed you will likely have to go bankrupt, it takes years to recover from that.

Have a massive clear out and get some space saving furniture - wall beds, bunk beds, adult double beds on stilts, gateleg table, folding dining chairs, floor to ceiling/ wall to wall storage. The average room has tons of wasted space if you look up instead of down. Most households have loads of possessions they never use, you can live fine out of a large rucksack if you set your mind to it, plenty of travellers do.

kingstreet

JimS82 wrote: »

In your opinion what are the chances of getting a mortgage within 5 years after repossession if I used the gifted money to settle the shortfall with the mortgage company

Slim.

If you have a 40% deposit and will accept whatever rate and fee combination is offered, you will probably get a deal.