Need 2nd Mortgage

CrimeWave

We already have a joint mortgage of £50000 ( £286 a month for 4 years then SVR) on a house worth about £120000. We would like to purchase a house for £135000 and need a mortgage/loan of around £60 - £70K. Would we be granted a 2nd mortgage on good deposits/equity. The mortgage needs to have as little fees as possible and we need to be able to pay it all off within a year with as little fees as possible again. I need to be able to arrange the mortgage on short notice (1-2months) so woolwich is out of the question. I have seen INGS flexible mortgage of 6.24% Is there anything better for my situation? My wages £23k my wife £6k.

MortgageMamma

So you are selling your property and need to raise a mortgage of 60-70k for a house purchase yes?

I cannot say if ING is the best deal for you as I dont know your personal situation, but its not a bad deal on the face of it. most important thing when borrowing a small amount like you are is to not pay an application fee.

CrimeWave

Bit more complicated than that. The house will not be sold. My mums will be sold eventually. My mum will live in my house, when we buy a new one, and my brother lives in my mums until he is ready to move out. My father recently passed away and my mum will pay me for my house once probate is through. Just wondering if a 2nd mortgage, if it is possible, is the easiest and most cost effective option just for the few months - a year.

bigstevex

I think the banks wont take the equity into account, they will look at affordability, i.e can you pay them each month! Especially with the current credit crunch risk i would say that was quite high risk,

I'm not a mortgage advisor though so i'm probably totally wrong

Perspective

I think you need ot be looking at bridging finance to do what you want to do

CrimeWave

Im thinking of 'pretending' to be a buy to let client. Should get that house easily? Seen some deals flexi mortgage with no arrangement fees etc 6.3% Saffron BS. I can then pay off the whole mortgage within a year? (There is a 95% chance of this happening) What would be the consequences? and what to look out for?

Lomion

Depends on the affordability. I own 2 houses with Repayment mortgages on each. Was no problem arranging the 2nd one. Mind you, the total borrowing is only 2.8x Salary and I had a big deposit saved for the 2nd house.


So I guess the answer is....depends