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Second Mortgage
jimbo1982
Posts: 5 Forumite
Hi,
I have a mortgage against my current home of 144K, the house is valued at around 260K and I plan to move at the start of next year. However, I want to buy a new build for which the price won't be released until October/november for a completion date of March/April.
In order to reserve the property I have to be Sold STC on my current property so we can exchange within a month of reserving. Obviously finding someone to buy by current property in October but be willing to wait until March/April won't be easy. I am therefore looking at what options are available to me. One that came to mind, and I am open to other suggestions, was a second mortgage.
Will I be able to get a new mortgage for my current property of say 195K, to I can release some of the equity to help toward my new property, and then get a mortgage for the new property.
I was thinking this would allow me to reserve, exchange and buy the new property while holding off on selling my current property until the beginning of next year, planning to complete on that around April time, where a month or two later won't be a big deal, i.e. I have the money to pay for both mortgages.
Do people know what banks will be ok with 2 mortgages. I am currently with HSBC and would like the mortgage on my new property to be with them but don't care about the mortgage I need to get for my current property.
Thoughts?
Thanks
James
I have a mortgage against my current home of 144K, the house is valued at around 260K and I plan to move at the start of next year. However, I want to buy a new build for which the price won't be released until October/november for a completion date of March/April.
In order to reserve the property I have to be Sold STC on my current property so we can exchange within a month of reserving. Obviously finding someone to buy by current property in October but be willing to wait until March/April won't be easy. I am therefore looking at what options are available to me. One that came to mind, and I am open to other suggestions, was a second mortgage.
Will I be able to get a new mortgage for my current property of say 195K, to I can release some of the equity to help toward my new property, and then get a mortgage for the new property.
I was thinking this would allow me to reserve, exchange and buy the new property while holding off on selling my current property until the beginning of next year, planning to complete on that around April time, where a month or two later won't be a big deal, i.e. I have the money to pay for both mortgages.
Do people know what banks will be ok with 2 mortgages. I am currently with HSBC and would like the mortgage on my new property to be with them but don't care about the mortgage I need to get for my current property.
Thoughts?
Thanks
James
0
Comments
-
Put your current property on the market now and sell it ASAP.
Move into rented for six months and when the new build is ready just give one months notice ( after the first 6 months )
You maybe able to get a second mortgage if you have the income.0 -
I was thinking this would allow me to reserve, exchange and buy the new property while holding off on selling my current property until the beginning of next year
Very risky to exchange contracts without a mortgage in place. Your solicitor would most certainly advise against doing so.
Why the rush? There's no certainty that the property will be ready in April.0
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