2nd mortgage question

mscroft

Hi, I wonder if someone could offer some advice please.

We are a forces family currently living in Germany. We own a house in the UK which is rented out on a long term basis. The house is worth about £210,000 and we have £44,000 left on the mortgage. My aging Parents have been in poor health recently and I want to buy another house in my hometown, near my parents so I can visit more often, for longer periods. A small 2 bed, no more than £100,000.

My question is, should I re mortgage the first house to buy the 2nd outright or take out a completely new mortgage and leave the current one alone?

Any advise is appreciated.
Thank you.

kingstreet

Do you have a 15%+ deposit?

If not, raising the mortgage on your current property appears the only option.

Be careful, some lenders will not allow service personnel to let on a residential mortgage, while others will.

mscroft

Thanks for your reply.

No, we dont have a deposit - we currently have a flexible mortgage and make regular over payments with whatever we have left each month. We have consent to let based on having to move with my Husbands job but are worried that a new remortgage ( with a new lender as we are with NR who no longer lend) would have to be a BTL. We know the finances would work as we overpay by £2000 most months. The rent we receive is £800. The new property wouldnt be let, but used to visit family more often.