Saving toward 2nd mortgage??

brokeapproaching30

Hi - wondered if anyone could offer their wisdom on my current situation.

I am in the process of completing on my first home. It was never meant to be a forever home, just something to get me on the ladder. Timing wise, its all gone a bit wrong in that due to change of job circumstance with the OH, it seems like he may have to move from the area within the next year.

Kind of annoying as we haven't even moved in yet! The plan was always for me to keep the property as a BTL (once able to change across to a BTL mortgage).

My question is this...(current interest rate on mortgage 2.29% with 100,995 on there), is it better for me to be using ongoing savings toward a second mortgage deposit somewhere else with the OH (current mortgage is just in my name due to OH having recent CCJ), or to be using the savings to make overpayments on the mortgage? Currently all my savings go into an easy access cash ISA (don't have security to put it away into a fixed saver) & the rate on this is 1.55%

Many apologies if this is in the wrong part of the forum. Just trying to forward plan what to do with my hard worked for savings!! Happy Sunday everyone!

kingstreet

Without being able to work out the loan to value, it's impossible to plan what might be possible.

It will also depend on timing.

You may be able to get consent to let from existing lender if they allow it, but this may be subject to increased rate, fee or both.

Assuming you can't remortgage to a BTL to borrow more, the deposit for another property must come from savings and you'll need at least 10%, in some cases more.

You'll need a lender for the second property willing to ignore the let property in the background as self-financing, so rent will need to exceed mortgage interest by about 25%.

I suggest speaking to an independent mortgage broker to plan this properly as plenty of lenders won't allow you to have two residential mortgages.

brokeapproaching30

Thanks Kingstreet