Buying 2nd home but keeping 1st home (possibly!)

jonathan_1983

Hello,

Could do with a bit of help here, I've done numerous searches but nothing concrete comes up.

I bought my house in Feb 2012 for £90,000 (80k mortgage with 10k deposit). A year ago, I remortgaged with the Post Office (Bank of Ireland) with a 5 year fixed deal. I put the house value down at £106,000 as I was aiming for £75 LTV. The house valuation went through fine.

Now, I am considering moving home for various reasons. I don't have a deposit in terms of cash. I know the easiest thing would be to sell my current house and purchase the new one as there should be a reasonable amount of profit to put towards a deposit. Houses on my street sell very quickly and checking Rightmove's sold prices, 2 bedroom ones sell for £100 - £105k and one 3 bedroom one has recently sold for £120k. I know nothing is guaranteed but I am fairly confident mine could sell for circa £120k.

It would also be easily rentable so I am wondering if it is possible to keep my current house, use the equity in the house towards a new house and rent out the current house. Would this be a difficult process or does this kind of deal does not exist or is very limited?

In terms of money, the new home would be circa £185,000. I have a clean history in terms of finance and earn £42,000 per year. There is the possibility my partner could be on the new mortgage too (earning £24,000 per year).

Thanks for reading.

getmore4less

Deposit will be your problem, you can't just use another house you have to raise the cash(which could be by a bigger mortgage on the first place).

amnblog

You don't have the equity you need for the purchase without the sale.