Broker question - is this feasible?

jonnydeppiwish!

Hi everyone

Quick question (I hope!). We’d like to buy a house but keep hold of our current one until we’ve finish renovating the new one.

Joint income: ~ £100k
Current house value: ~ £415k (conservative end of recent valuations)
New house: ~ £315k
Renovation costs: ~ £35k with no extension, ~ £90k with extension
No mortgage or debt except a credit card we pay off each month.
Savings: ~ £35k

Can we do that with 2 mortgages? Is it feasible?

Thanks in advance!

ACG

Subject to a few bits it should be possible yes. 

jonnydeppiwish!

ACG said:

Subject to a few bits it should be possible yes. 

Thanks - would we need separate mortgages on both properties? What bits would it be subject to?

Cheers ACG

ACG

You would need to secure mortgages across both properties. 
It would just be subject normal affordability and credit checks, the properties fitting criteria and any other bits that could become a problem - short time in employment etc. 

BikingBud

jonnydeppiwish! said:Hi everyone

Quick question (I hope!). We’d like to buy a house but keep hold of our current one until we’ve finish renovating the new one.

Joint income: ~ £100k
Current house value: ~ £415k (conservative end of recent valuations) - Mortgage free?
New house: ~ £315k - Are you intending to pay cash?
Renovation costs: ~ £35k with no extension, ~ £90k with extension - Which?
No mortgage or debt except a credit card we pay off each month. - Seems to counter other post above!
Savings: ~ £35k - So you could cover the cost of the second house renovation?

Can we do that with 2 mortgages? Is it feasible? - So you now need 2 mortgages!

Thanks in advance!

jonnydeppiwish! said:

ACG said:

Subject to a few bits it should be possible yes. 

Thanks - would we need separate mortgages on both properties? What bits would it be subject to?

Cheers ACG

So you do need mortgages then? How much deposit do you have for the new house?

Pointless quoting the value of the properties without advising how much would be subject to mortgages and also deciding if you will use your savings to meet that cost or if you need additional funding.

Likely also to consider SDLT.

jonnydeppiwish!

BikingBud said:

jonnydeppiwish! said:Hi everyone

Quick question (I hope!). We’d like to buy a house but keep hold of our current one until we’ve finish renovating the new one.

Joint income: ~ £100k
Current house value: ~ £415k (conservative end of recent valuations) - Mortgage free?
New house: ~ £315k - Are you intending to pay cash?
Renovation costs: ~ £35k with no extension, ~ £90k with extension - Which?
No mortgage or debt except a credit card we pay off each month. - Seems to counter other post above!
Savings: ~ £35k - So you could cover the cost of the second house renovation?

Can we do that with 2 mortgages? Is it feasible? - So you now need 2 mortgages!

Thanks in advance!

jonnydeppiwish! said:

ACG said:

Subject to a few bits it should be possible yes. 

Thanks - would we need separate mortgages on both properties? What bits would it be subject to?

Cheers ACG

So you do need mortgages then? How much deposit do you have for the new house?

Pointless quoting the value of the properties without advising how much would be subject to mortgages and also deciding if you will use your savings to meet that cost or if you need additional funding.

Likely also to consider SDLT.

No mortgage on current house but was thinking if it was possible to get one on current, use that as equity for deposit and renovation work, then get a mortgage on new house.
6 months work then sell current house and reclaim extra SDLT.