Second home advice required

kids9698

3Hi. Please could someone help with this. My job is moving. I wish to keep my existing home (worth approx 325k, loan left only £1000 costing £8.50pm) and buy a small home near my new work address, which I will sell in around 5 years when I retire. I will then move back to my existing home. I have no deposit to put down. I earn £40K pa. How much money can I have as a mortgage for my second home? Thanks

K_S

@kids9698There simply isn't enough information to go on. If you are close to retirement, then it gets more complicated as you may have limited flexibility with term.

You will need a deposit and given that you have an (almost) mortgage-free property, it may be that the most straightforward solution is to do a capital-raise remortgage on your current home, release sufficient equity to buy the new property outright. 

You may have options (with one of the smaller building societies) to take out an interest-only (or part and part) mortgage with an exit-strategy of sale of second home. 

I would recommend playing around with a couple of lender affordability calculators and see what they say about how much you can borrow on a remortgage.
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/