Remortgage to buy a second home

SarahR71

Hi, I am after some advice/to speak to someone who has been through a similar situation. So, myself and my husband used to live with my mother in law in a house that is in my husband's name and for which he pays the mortgage for. After having 3 children, we moved out and away from the area and left my mother in law in that house. We are currently renting but would like to get our own place and as we don't have a deposit we were thinking the best thing to do would be to remortgage the house and get more money from that to buy a house in this area outright.

Some info.... My husband's current house is worth around 370k, the current mortgage is 150k and we would be looking to remortgage for 270-280k.

My question is whether we would be able to remortgage and get extra money out on it when we don't actually live in the property?

Thanks for reading my babble (never used a forum before!) And thanks on advance for any help/advice given

poppy10_2

How much is the house you are looking to buy?
Could you afford to pay the two mortgages?

Lilla_D

Poppy's questions are valid, but ultimately can only be answered once a broker has reviewed all the relevant details. For example, income, outgoings, credit history, age, children related costs, etc.

In theory it is possible to remortgage, raise capital and buy a new home for yourself, so the answer to your question is yes.

If your mother-in-law still lives in the current property, then you can either remortgage it onto a new residential deal or onto a regulated buy to let deal, if she pays rent.

SarahR71

Hi, thank you for your replies. My mother in law does not pay us any rent so we would be paying the mortgage ourselves. We are currently paying over £1300 a month for mortgage plus rent so would actually be saving money if we just had the mortgage to pay. However, we did ask a couple of brokers last year about getting extra money out on the mortgage and were told that it is very difficult to do as we don't actually live in the mortgaged property? I'm hoping there is a way around this! !!!55357;!!!56847;

enthusiasticsaver

You might be opening a can of worms here. What type of mortgage do you have on the house your MIL lives in and the one you are hoping to raise capital from? If it is residential it will need to be changed to buy to let which is more expensive even if you don't receive rent from your MIL. It may be possible to raise more money on it although it would be cheaper to mortgage the new property you will be living in. The problem is no deposit though. If your MIL is now living in a property too big for her can you not sell, keep some back as a deposit for a new property for you to live in and buy somewhere smaller for MIL?