Obtaining a second mortgage

Dean_j_2

Morning all

In a 12-18 months time I'll be looking to move out of our flat and into a 3 bed house, as we now have two kids.

We bought our flat in 2007 on an interest free mortgage. Great place to live but now we need the extra room, we'd like to get out. There's a few problems with this. Our flat doesn't have any equity in it. We expected it to make us a few quid to move with but that hasn't materialised. Secondly, the flat has had it's fair share of problems. The main one (which hasn't been solved as yet) is the rear of the building has let water in. All under warranty, but there doesn't seem any benefits in selling it.

I'm looking to raise the deposit to buy a second property and rent the flat.

My idea was to let the flat with permission from the lender and overpay with the income, and obtain a second mortgage based on our 50k income.

I could probably raise 25k by end of next year and at the moment, properties seem to be anything from 200-250k for three beds.

Is this even feasible? Would my current lender (nationwide) give me permission to let based on the lack of room for our family? Would another lender give us a mortgage if we already have one?

Any input would be much appreciated

Cheers

kingstreet

Dean_j wrote: »

Is this even feasible? Would my current lender (nationwide) give me permission to let based on the lack of room for our family? Would another lender give us a mortgage if we already have one?

Possibly.

Possibly, subject to 1.5% per annum rate loading.

Possibly, subject to affordability status etc.