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Buying a second property using equity on current mortgage

edited 30 November -1 at 1:00AM in Mortgages & Endowments
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maximw1234maximw1234 Forumite
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edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi,

I currently have a mortgage with my mum. House value is £90,000 and we have got £48,000 left to pay. I do not pay for this mortgage, however, it is still on my name.

I was wondering if it's possible to get a SECOND mortgage to buy a second house using the equity on my current house as a deposit? my salary is £23,000 plus £8,000 income from self-employment and £5,000 profit.

So I will end up having two mortgages, one with my mum and a second mortgage on my own.

Thank you!

Replies

  • AnotherJoeAnotherJoe Forumite
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    Since you've given no idea of the size of the second mortgage you'd like to get, or the cost of the house you'd like to buy, it's hard to say. :D
    Note, when you buy a house, the sellers like to get actual money for it. That usually comes from a combination of a mortgage (where a lender provides the money) and your deposit. An IOU for the equity in your house doesn't cut it. So the only way you could use the equity in your house for the deposit is to increase your and mums current mortgage to release some as cash, which would work against the extra mortage you want to get.
    See a mortgage broker.
  • davidmcndavidmcn Forumite
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    maximw1234 wrote: »
    So I will end up having two mortgages, one with my mum and a second mortgage on my own.
    If you own your current property jointly with your mum then she'd at the very least need to be a party to any new charge over it, and for most lenders she'd also need to be a joint borrower for your additional borrowing.
  • getmore4lessgetmore4less Forumite
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    You cannot use equity as a deposit you need real cash.

    That means a bigger mortgage on the place that has the equity to get the cash.
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