Using Existing House as Collateral

joujou

We're close to getting our current house fully paid off. 2.5 years away.

We don't a deposit for a better house without selling this one.

Rather than selling, one option I thought about is using the current house as collateral and keeping it, and getting a new mortgage on a different house.

I don't know whether this is common practice, and what banks accept this sort of thing. Advice?

kingstreet

There are currently no lenders offering cross-charge facilities outside of the parental-assist products for FTBs.

if you plan to let property one, you will have to remortgage it to raise the deposit.

Either way you'll have the extra SDLT to pay.