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Is a 2nd Mortgage what we need?
Options
Dee76
Posts: 37 Forumite
Hello
I would be very grateful for any advice.
Our home is due to go on the market in the next month or so.
It is worth around £220,000 and the mortgage owed on this is just under £43,000.
We have seen a new property at £190,000 which is not likely to stay on the market for very long. We have over £130,000 in savings towards the property without selling our main home. We would need a mortgage of around £60,000.
As I don't think we have time to wait for our home to sell, is a second mortgage the best option to buy the new property? We would do this with a view to selling our current home as soon as possible and paying off the original mortgage and paying some off the 2nd mortgage.
We have thought about a bridging loan but this has been ruled out as its just to risky. Are there any other options? If we plan to reduce the second mortgage after a few months, what type of mortgage would be most suitable.
Again any advice would be great. Thank you.
Dee
I would be very grateful for any advice.
Our home is due to go on the market in the next month or so.
It is worth around £220,000 and the mortgage owed on this is just under £43,000.
We have seen a new property at £190,000 which is not likely to stay on the market for very long. We have over £130,000 in savings towards the property without selling our main home. We would need a mortgage of around £60,000.
As I don't think we have time to wait for our home to sell, is a second mortgage the best option to buy the new property? We would do this with a view to selling our current home as soon as possible and paying off the original mortgage and paying some off the 2nd mortgage.
We have thought about a bridging loan but this has been ruled out as its just to risky. Are there any other options? If we plan to reduce the second mortgage after a few months, what type of mortgage would be most suitable.
Again any advice would be great. Thank you.
Dee
0
Comments
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It's a residential mortgage for a second home. Should be fine as long as you can demonstrate affordability for both mortgages.
A second mortgage would be a loan secured on your current home with a second charge behind that of your current mortgage lender.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
KS is right.
Mortgage for second home is simplest option.
Second option is to get consent to let from your current lender (this should satisfy the new lender)
Third option as you have identified is a bridgeI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you for your advice. This has helped a great deal.0
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