Getting a second mortgage

jim_layhee

I've seen a house I like which is up for sale for roughly £200,000.

Unfortunately it is a repossession and I've been told that the bank won't consider an offer unless my property is already under offer.

There is no way I could sell my house quickly enough, so I'm interested in finding out if there are other possible ways to finance this purchase then repay later once my house has sold.

My current property is worth around £155,000 and I've got a mortgage for £35,000. I have also have £20,000 in savings.

Ideally I'd like to get a second mortgage with my brother. We both earn approx £35,000 per year. This second mortgage would be interest-only, then once my current property has sold I could repay a chunk of this.

Is this even possible? Presumably my current mortgage lender would need to know about any other mortgages I take on?

Thanks,
Jim

Conrad

Yes its possible. Quite a few lenders do 'let to buy' but beware those that want your existing lender to agree to your letting out (I realise you are'nt going to let it).

Alternatively buy the new one as a B2L in your name only with an 80% mortgage.

Conrad

Intelligent Finance allow a second mortgage as long as its your intention to sell the existing home.

They might not like your brother being on the mortgage if nhe has a mortgage on his residence already.

jim_layhee

Thanks for the info Conrad, my brother is a first-time buyer so doesn't have an existing mortgage.

Jim