Second Mortgages

K1RST1E_2

Hi,

My husband and I own a 50% share in our current house. We bought it back in 2006 with a very small deposit. The house at the time of buying was £163k, our deposit equated to 3% resulting in us acquiring a mortgage from Halifax for £79k. The house prices crashed and we started to be in negative equity, easily done with such a small deposit. Other houses in our area exactly the same as ours are selling for £140k-£150k.

Sadly, my father in law has recently passed away and the house he owned is now my husbands and sister in laws. She would like to sell it and we would like to buy it to move in to. The house is worth approx. £160k. We'd be looking at a mortgage of £80k to buy out my sister in law. Combined, my husband and I earn £60k+ a year.

I'm under no illusion that selling our current home will be long and hard and I have no idea how second mortgages work. Would we be able to apply for a mortgage on the house we intend to move into whilst also having one on our current house until it is sold? We have been able to clear any debts we have through the inheritance so it is just the mortgage we have as credit.

Thanks.

knightstyle

Make sure your income will pay the two mortgages if the interest rate rises. Then if you are sure this is what you want go and talk to a mortgage advisor. Make sure you don't sign anything on the spot, you are just getting info.

K1RST1E_2

Thank you. At current rates, we'd worked out that we could for a while so thinking about if/ when the interest rates rise is something I hadn't considered. I'm hoping that the housing association will offer to buy back our share. I remember reading it on all the documents that they would like the option to buy it back if we ever did decide to sell.

We're expecting to lose approx. £9k on our current house due to the current market which sucks but that's just the way the cookie crumbles!