Getting a second mortgage?

bigpappa

My current situation. I have 50% of my mortgage paid off and was thinking of taking out a loan for £25k to do some house renovations.

Now a lovely street both location and size of property a house has become available. The person wasnts to downsize and are not in a chain.

Now my wife is getting back to work after our second child - trying to sort out childcare.

We could stretch and get together the deposit and buy it as a second home. So I am not sure how to proceed.

1) I have been delaying our house renovation for a while but now the tradesman are free I do not want to delay further. However now a house has come on the market I like do I just end this renovation?

2) Can I do the following - take out the loan £25k then put in the offer for a second home and if it's accepted get a mortgage for the second home plus £25k extra and then buy the second home and pay off my loan as the mortgage interest rate is about half that on the loan?

I don't think we will have a problem getting finance as my wife is a GP though she has only worked 1 day a week for the last year. She will need to go back full time obviously.

dimbo61

Have you told your GP wife the good news ?
I know you have just given birth to our second child and the house needs £25000 spending on it BUT you need to return to work FULL TIME with 2 young children at home.
You need a 20/25% deposit for a BTL property and lenders now ask for your business plan !
EPC, GSC, EICR, HMO licence, yield, target renter, etc

blue_max_3

Why do you want a second home? 

bigpappa

dimbo61 said:

Have you told your GP wife the good news ?
I know you have just given birth to our second child and the house needs £25000 spending on it BUT you need to return to work FULL TIME with 2 young children at home.
You need a 20/25% deposit for a BTL property and lenders now ask for your business plan !
EPC, GSC, EICR, HMO licence, yield, target renter, etc

blue_max_3 said:

Why do you want a second home? 

Not a buy to let but to buy to live in. I was thinking if house prices are going to drop - homes like these hardly come onto the market so I could get a better price if I just buy outright than say I am in a chain. Then continue with the refurb of our current home and then list it depending on how the market is or rent it out.

I know I will pay 3% extra in stamp duty but thats only an issue if I do not sell my current property within 3 years.