best mortgage option to keep current property and purchase 2nd with girlfriend?

jonhoggy

Hello everyone

i'm just after some advice as im not clued up on mortgages and the like

i currently have my own property which i would like to keep and probably rent out
ive been living in this property for seven years
the plan is to buy a second property with my girlfriend and move into that one
my current mortgage is with Nationwide and i have discussed releasing equity to buy second property
that would mean an increase to my current mortgage and paying for a second mortgage
i dont know how best to juggle mortgages to obtain the best deal
i was astounded at how much this was going to cost by using equity towards second mortgage if i stay with Nationwide
i currently have £37k to pay on mine and the house we are looking at is £140k
is it a matter of me doing research for the best mortgage deals ?
would i be better off trying to sell mine (valued £110k), pay off mortgage, put down deposit and
put profit in high interest account ?
unfortunately we dont have a deposit which is why i would use current property as equity
sorry if i sound vague but just chatting with other MSE'ers and discussing options would be a big help! :T

foxwales

With the housing market the way it is; I personally think its the wrong time to buy and to sell.

With only 37k left on your current mortgage I think it would be wise for you and your girlfriend to share your current house until the market levels off.

This should allow you to build up a deposit together so you can take advantage of better mortgage rates in the future; plus if housing prices continue to drop; you will get more for your money in the future.

On the other hand; if the market picks up again; you will benefit from your current house being worth more; so if you sell it you will get a decent profit; plus the deposit you have saved would give you a nice sum to purchase maybe a bigger house, or be mortgage free even earlier?

Plus if you have never lived together before; this will give ample time for the relationship to develop to see if it works. It's not nice buying a house with a partner only to find out that the relationship isn't working and then you sell the house you bought together; only to be whacked in the face with early redemption charges.

sarkin

Agree with foxwales, now is not the time to be getting in BTL, Here in Bournemouth there are over 4,000 studio 1 and 2 bed flats up for sale.

jonhoggy

Thanks foxwales and sarkin for your comments.

I've actually been living with my girlfriend for 4 years (in my property)
and we are really wanting to invest together and want to do this
fairly imminently (for a number of reasons).

I dont particularly want to go into BTL, but i thought id be daft to sell
as the property has doubled in value and is a good nest egg for
the future. Selling is still an option however.

I know now isnt the best time to buy, but we do need to move sooner
rather than later. We could always change the mortgage deal a couple
of years down the line if the rates and offers improve.