Buying Additional Property With Mortgage/Current Owned Outright

westv

I originally posted this question in the House Selling and Renting forum but on second thoughts it might be more correct to ask here.

This is currently just an idea I have.

I own a property outright but am considering purchasing a new property as my main home. The first property would then be put up for sale.
I have heard that lenders will only loan a maximum of around 80% of a property value if the borrower already owns another property. Is this correct - even if one of the properties is owned outright? The first property is not mortgageable.

kingstreet

No it isn't.

Some will do 85%, some will do 90%.

It varies from lender to lender.

Newbuild LTV may be a factor if the property is brand new though.

westv

kingstreet wrote: »

No it isn't.

Some will do 85%, some will do 90%.

It varies from lender to lender.

Newbuild LTV may be a factor if the property is brand new though.

Ok thanks. I thought it sounded a bit strange seeing as there is no BTL element. 90% does seem to be the norm now for minimum deposits.

westv

Sorry to drag this old thread back again but I thought I better mention that I heard HSBC apply the 80% rule. I know I could just ask them but I thought I'd mention it in this wonderful forum first.
Not new build.