Getting a mortgage on new property whilst retaining old mortgage?

catterlen

I'm after some thoughts here please, specifically-
We are at the top of a chain. We had planned or be the end of the chain and ere taking our equity and looking for somewhere once safely in rented. However, an unusual opportunity to buy a house we had originally wanted many years ago but couldn't get came up. We have offered and been accepted, thus forming another part of the chain.nthese people need to move soon, as they are wanting to relocate to be with their (impending) grandchild in less than 2 months.
So, we will go through the usual conveyancing etc and mortgage application. We have a 15% deposit and can pay all fees/duties etc WITHOUT depending on our current sale. Is there anything to stop us (eg in mortgage conditions as a condition of loan) taking out the mortgage on The new property and paying that plus our current mortgage (which will be in total around one quarter of our monthly total salary)?
The hope being that the old property then gets paid off with the impending sale.
If not, we would look at remortgaging as buy to let further down the line, as we have around 35% equity in current house.

So-apart from the obvious danger of 2 mortgages, which I know plenty will say is bad, is this actually possible and doable? Am I missing some tax or legal implication etc?
Advice appreciated.

getmore4less

total lending?
income?

kingstreet

Some lenders won't allow two residential mortgages.

As gm4l said, this is going to depend on you being able to demonstrate you can afford to pay both to the lenders who will consider such cases.

I'd approach it as a let to buy. Get consent to let from current lender and rental assessment from ARLA registered letting agent. Provided it will be viewed as self-financing, you may not have to demonstrate affordability for both mortgages.

catterlen

getmore4less wrote: »

total lending?
income?

We want to buy at £308k, with a 15% deposit.
Original property is remaining mortgage of £118k with sale price agreed of £170k.
Total combined income for both is £108k per year (guaranteed not inc. overtime).
No credit card debts, one car loan over 3 years, around £300 pcm.

catterlen

kingstreet wrote: »

Some lenders won't allow two residential mortgages.

As gm4l said, this is going to depend on you being able to demonstrate you can afford to pay both to the lenders who will consider such cases.

I'd approach it as a let to buy. Get consent to let from current lender and rental assessment from ARLA registered letting agent. Provided it will be viewed as self-financing, you may not have to demonstrate affordability for both mortgages.

I'm not familiar with let to buy- where can I find more info about this please, and would it have tax implications/ limit lenders?