Mortgage for second property

Ruraldave1

Hi All

Just after some opinions/ experience on whether there any options available to us to buy a second property, and whether it's feasible or not.

My ambition is to one day buy a house with some land and set up a small holding. I have seen a property that fits the bill, but requires renovation (I believe it is in mortgageable condition - just). It is for sale for 160k.

My partner and I are both 32 and already have a mortgage on a property (property value approx 200k, outstanding mortgage is 91k with 33 years left to run). We would like to keep our existing house, buy this second one, do it up, and perhaps move into it in a couple of years time (and either sell our original property or let it out).

Our combined earnings are approx £63000 p.a. and we have no children/dependents. We have no other debts (cc, loans, finance etc). I have been heavily overpaying our existing mortgage, but have hit our overpayment limit for this year, so will have that money extra each month. I can cash in some investments/savings fairly quickly which would raise approx £15k- £20k to act towards deposit, stamp duty etc.

Does anyone think there would be any options available to us to buy this second property? Or am I just day dreaming?
Thanks for any help, advice and opinions

amnblog

This sounds like it can be done, but it will be anything by straightforward.

Expect to put down a larger deposit than you currently have available on the new property. You will therefore be raising extra funds against your existing property as we as taking lending against the new property.

How you structure everything depends on your plans for the small holding.

A job for a broker.