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  • FIRST POST
    • maximw1234
    • By maximw1234 18th May 19, 6:57 PM
    • 1Posts
    • 0Thanks
    maximw1234
    Buying a second property using equity on current mortgage
    • #1
    • 18th May 19, 6:57 PM
    Buying a second property using equity on current mortgage 18th May 19 at 6:57 PM
    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!
Page 1
    • AnotherJoe
    • By AnotherJoe 18th May 19, 7:53 PM
    • 14,653 Posts
    • 17,501 Thanks
    AnotherJoe
    • #2
    • 18th May 19, 7:53 PM
    • #2
    • 18th May 19, 7:53 PM
    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.
    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.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • davidmcn
    • By davidmcn 18th May 19, 8:02 PM
    • 11,557 Posts
    • 12,782 Thanks
    davidmcn
    • #3
    • 18th May 19, 8:02 PM
    • #3
    • 18th May 19, 8:02 PM
    So I will end up having two mortgages, one with my mum and a second mortgage on my own.
    Originally posted by maximw1234
    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.
    • getmore4less
    • By getmore4less 19th May 19, 5:39 AM
    • 36,245 Posts
    • 22,321 Thanks
    getmore4less
    • #4
    • 19th May 19, 5:39 AM
    • #4
    • 19th May 19, 5:39 AM
    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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