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Remortgaging for second property
GAILEY
Posts: 139 Forumite
I have a quick question please - about possibilities.
I want to make sure I explore all of my options, though every case will be different I know.
My own home is subject to a mortgage (Nationwide)...small mortgage left. I'm in England
I want to relocate to Scotland, which has of course a different buying regime.
I have identified a property I like, and it is substantially cheaper than my current home's value although in serious disrepair.
My hope was to finance the purchase of new property by increasing mortgage on current one, then selling current one and paying it off completely.
Online, this seems impossible as I don't meet the affordability criteria.....but this is assuming I am borrowing against one property and repaying long term?
Is there any other way of doing this ie. the calculations taking into account the acquisition and value of property 2 plus the limited time of duality?
Any thoughts (including the ...you must be mad, and the lender will think so too) appreciated
Gail
I want to make sure I explore all of my options, though every case will be different I know.
My own home is subject to a mortgage (Nationwide)...small mortgage left. I'm in England
I want to relocate to Scotland, which has of course a different buying regime.
I have identified a property I like, and it is substantially cheaper than my current home's value although in serious disrepair.
My hope was to finance the purchase of new property by increasing mortgage on current one, then selling current one and paying it off completely.
Online, this seems impossible as I don't meet the affordability criteria.....but this is assuming I am borrowing against one property and repaying long term?
Is there any other way of doing this ie. the calculations taking into account the acquisition and value of property 2 plus the limited time of duality?
Any thoughts (including the ...you must be mad, and the lender will think so too) appreciated
Gail
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Comments
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You want to increase the mortgage on your current property, buy the new property with the extra money, and then sell the current place to pay off the Nationwide mortgage? It seems reasonable but I think it helps to think with numbers.So currently you have a property worth 500k and outstanding mortgage of 300k.You want to increase this mortgage to 400k and thereby release 100k of equity. Does your income support a 400k mortgage?You want to use the 100k released to buy the property in Scotland. Is this enough, or would you need further borrowing?
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My income alone is not enough to support the envisaged mortgage on their calculator.
It falls short by about £50K
I suppose that's the question in a nutshell - on standard calculation, income wise I cannot carry 2 babies, albeit the capital (and therefore presumably the risk) is the same to the lender, and the idea being that it is very short term.....
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A bridging loan fits your exact scenario, but they don’t come cheap.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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Thanks all
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