is collateral acceptable when applying for a mortgage

kingstreet

MyRealNameToo said:

kingstreet said:

Cross-charging ended some years ago when the One Account was closed to new business.

Which? has a June 2025 article recommending cross charging for buying property overseas? I'm no fan of Which? but wouldnt have thought they'd recommend something thats no longer possible and would be surprised if lenders were that interested on what you are wanting the cash for when releasing equity from your current property as long as affordability etc all adds up. 

Taking charges over two properties to secure one loan? Which lender(s) are they talking about?

Lenders typically have a list of prohibited reasons for borrowing. Nationwide's criteria for a further advance, for example, says "Purchase land/property separate from the security (additional borrowing is not acceptable for the purpose of buying a property/land that'll then be let out)."

MyRealNameToo

kingstreet said:

MyRealNameToo said:

kingstreet said:

Cross-charging ended some years ago when the One Account was closed to new business.

Which? has a June 2025 article recommending cross charging for buying property overseas? I'm no fan of Which? but wouldnt have thought they'd recommend something thats no longer possible and would be surprised if lenders were that interested on what you are wanting the cash for when releasing equity from your current property as long as affordability etc all adds up. 

Taking charges over two properties to secure one loan? Which lender(s) are they talking about?

Lenders typically have a list of prohibited reasons for borrowing. Nationwide's criteria for a further advance, for example, says "Purchase land/property separate from the security (additional borrowing is not acceptable for the purpose of buying a property/land that'll then be let out)."

No, was suggesting a single charge on the currently unencumbered (presumably) property to fund the purchase of another. Which is what Which? recommendation is for those wanting a holiday home for themselves overseas but with a British bank as the lender. 

fireballpaul

MyRealNameToo said:

You can take a mortgage out on the old home and use it to fund your new purchase

why not just rent out the old home and use that money to pay the mortgage?

kingstreet

MyRealNameToo said:

kingstreet said:

MyRealNameToo said:

kingstreet said:

Cross-charging ended some years ago when the One Account was closed to new business.

Which? has a June 2025 article recommending cross charging for buying property overseas? I'm no fan of Which? but wouldnt have thought they'd recommend something thats no longer possible and would be surprised if lenders were that interested on what you are wanting the cash for when releasing equity from your current property as long as affordability etc all adds up. 

Taking charges over two properties to secure one loan? Which lender(s) are they talking about?

Lenders typically have a list of prohibited reasons for borrowing. Nationwide's criteria for a further advance, for example, says "Purchase land/property separate from the security (additional borrowing is not acceptable for the purpose of buying a property/land that'll then be let out)."

No, was suggesting a single charge on the currently unencumbered (presumably) property to fund the purchase of another. Which is what Which? recommendation is for those wanting a holiday home for themselves overseas but with a British bank as the lender. 

That's just a standard capital raising remortgage which is pretty usual for the purpose identified. As stated, cross charging is securing one loan using two properties. For example, if you want to borrow £500k, but the highest value for only one property is £400k. A second property worth £200k would also be used so the total security for the £500k loan would be £600k.