Advice on purchasing a second property..

HAMMYLIV

We currently live in a small one bedroom flat. Bought in 2007.. with an unsecured loan and no deposit (familiar story on the forum!). We have been overpaying on the mortgage and the unsecured loan over the past few years and we are now (just about) out of negative equity.

We have also been saving up to move into a new property (in 2014). However, we need some advice...

The flat we currently live in is in a great location as a rental property and we have an agreement with our mortgage provider to let it out if need be. We would ideally like to do this as an investment - the price of the property is likely to rise.

Will this current mortgage and the unsecured loan affect our ability to get a mortgage on a new property? We have a choice at the minute - do we put our extra money each month into the current property to help shift the unsecured loan or do we save it to go towards a larger deposit on a new place?

We have already saved a 15% deposit for the new property.

The new property we will be buying as a couple. The first property is in the name of my partner only...

Any help/advice much appreciated. :cool:

Dave_Ham

Hi there,

You are likely to need to sit down with a broker to look at the details, but well done for paying down your existing mortgage.

There will be options but will absolutely depend upon the details.

All the best