Second Mortgage??

EmilyCC87

Hi, I am looking for some help with understanding how a second mortgage would work and the lending criteria. There is very little information online for this!

We own a property worth approx 550,000 with approx 30,000 to pay back on the mortgage.

We would like to purchase a second property to refurb and sell. We do not have a deposit so I assume we would have to remortgage to release some money from the current house.

The property we are looking to purchase would be 440,000 and we would need some additional funds to do the work/make the repayments.

Can anyone offer advice on whether this is possible and the best way to approach it?

thanks in advance.

Emily

dimbo61

No point starting off small !
£440,000 property and then what £50/60/70K to refurbish.
You have £520K equity in your home and if you have the income to support this huge mortgage and other costs I still think this is a big gamble.

EmilyCC87

thanks for the reply, we appreciate its a big amount! My partner will be doing the work and we aim to sell the second house pretty quickly. All we need is enough money to pay back the 2nd mortgage and do the work then we would make a fairly good profit when it comes to selling. We just need to know if any high street banks lend for this sort of thing.

Thrugelmir

Banks provide funding for sorts of business ventures. You may struggle to borrow however to borrow at mortgage interest rates for such a venture.

TrickyDicky101

What is you & your partner's gross income? Is it all PAYE or, if not, how is it made up?