Mortgage query... hoping to get a different answer to the obvious...

Johnmc_5

Here is my situation...

Have a current mortgage with 19 years left on a 83,000 (now 75,000) .5% above base tracker mortgage with Barclays (Woolwich). This is on a Family home and i want to purchase a second property. The second property will be my main residence but i have to keep the mortgage on the first property in my name. I have no deposit for the second property but if necessary could remortgage the first to free up some money.

My questions are...

Do i have to get a buy to let mortgage for the second property?

or

Will Barclays allow me to have one mortgage for both properties?

Or...

Any thing i may have not thought of...

Many thanks for any responses!

Jon_Davies

(1) Your best bet is to approach Barclays and obtian a consent to let on the first property so you can purchase property 2 on a residential basis. Dependant on the figures, you might want to ask for a drawdown to assist with the 2nd purchase.

(2) The only way you can have one mortgage for both is if you release enough to buy the second property outright, thus leaving you with one mortgage but two properties. This will only work if there is sufficient equity, obviously!

Dependant on penalties with Barclays, it might be worth mortgaging away from them as there are better rates than BOE+.5% at the moment.

Johnmc_5

Jon,

Many thanks for your response... can i ask a couple of follow up questions...

Will Barclays do that? knowing that the property will be lived in by Family so no rent will be charged. Is the drawdown limited to the difference between the original mortage figure and what i owe now or is it worked out any other way?