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second mortgage
bear.1973
Posts: 65 Forumite
Hi, I'm looking for some advice around a 2nd mortgage as I'm totally confused after speaking with 3 different advisors.
situ is:
current home valued 200k £77k left on mortgage
want to but another property that will be main residence £235k but have to move really quick so not wanting to be part of a chain. have 70k to put down as deposit on new home.
will sell current home later and wont line up with purchase of new home so needing advice on best way to do this.
do i apply for a 2nd mortgage for the difference, £160k after deposit, and also continue with the current mortgage?
what fees and pitfalls are there , if any to look out for?
i know ill be hit with 2nd property tax but believe I can claim this back once i sell my current home within a 12 month period?
Would i be able to get a 2nd mortgage on a deal that doesn't tie me in, and that i can end at any time without fees? (Tracker)? i anticipate my current house to be sold within 1 month of buying the 2 nd property. I would like to at this point arrange for a fixed rate deal and put all the equity from the sale down as lump sum to leave me with approx £110k mortgage.
income is not an issue, and i know i can borrow what i need but i really need to understand the best way around this.
any help appreciated
situ is:
current home valued 200k £77k left on mortgage
want to but another property that will be main residence £235k but have to move really quick so not wanting to be part of a chain. have 70k to put down as deposit on new home.
will sell current home later and wont line up with purchase of new home so needing advice on best way to do this.
do i apply for a 2nd mortgage for the difference, £160k after deposit, and also continue with the current mortgage?
what fees and pitfalls are there , if any to look out for?
i know ill be hit with 2nd property tax but believe I can claim this back once i sell my current home within a 12 month period?
Would i be able to get a 2nd mortgage on a deal that doesn't tie me in, and that i can end at any time without fees? (Tracker)? i anticipate my current house to be sold within 1 month of buying the 2 nd property. I would like to at this point arrange for a fixed rate deal and put all the equity from the sale down as lump sum to leave me with approx £110k mortgage.
income is not an issue, and i know i can borrow what i need but i really need to understand the best way around this.
any help appreciated
0
Comments
-
put all the equity from the sale down as lump sum to leave me with approx £110k mortgage.
are you sure
£235k £70k to put down
need to find £160k
current home valued £200k £77k left on mortgage
once sold £123k left.
Using that leaves £37k
(adjust for fees etc)
There are lenders that offer track and fix which will do what you want.
or use a lender with unlimited overpayments like First Direct.1 -
apologies, the amounts are:
230k put down £60k (savings) - need mortgage £170k
current home valued 200k have 77k left - equity 122k
when current home sells put 60k back into savings and the rest of new mortgage 62k
the buy & sell are not aligned & will happen on different days so i need to ensure the 2nd mortgage is in place to avoid losing the property. once my sale goes throu id then like to change the mortgage to a fixed rate , from the tracker, without penalty. is this doable? thanks0
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