Getting a second mortgage for a new build?

biomeddna

Hi all,

My flat has been on the market for 10 months with little interest. We have seen a house we want to buy, which is a new build. It is being built by a local company, there are only 4 houses being built. As we do not want to loose out on the new house, we are considering renting out our flat. However, I am unsure if we can do this financially. Will we be allowed a second mortgage? And does the fact that it is a new build affect it? I have enough for 10-15% deposit.

Thanks in advance

Thrugelmir

Reduce the selling price of your flat.

Foxy-Stoat_3

^^^^^ Do this rather unless you want to become a landlord just because you cant sell your flat.

Your lender needs to give you consent to let, you will need enough equity and charge enough rent to do this.

You will need enough deposit for the second mortgage and enough spare cash incase anything happens to your first property, including repair work and missed payments.

Look into being a Landlord first before considering it further.

kingstreet

With your deposit being so low, you have limited lender options on a newbuild to begin with. Add to that another property in the background and you will have severely limited options.

An independent broker would be a good starting point.