Mortgage Question

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KenJ

Original Poster:

122 posts

148 months

Saturday 5th April 2014
quotequote all
Thought I'd ask this question to all those with mortgage / finance knowledge on PH.

A few years ago we 'bought' our first home. Basically, we don't have a normal mortgage. We paid about 15% of the value of the house using some money we'd saved up. The rest my father gave to us, which we pay back directly to him. Therefore as far as the banks are concerned we own the property outright. So far, so reasonably simple!

We now want to move somewhere larger for which we'll have to take out a 'proper' mortgage. We also want to keep our existing house and let it out.

My question is; can we take out a bank / building society mortgage using the value of the house we 'own outright' as a deposit / collateral?

Any help appreciated.


Sarnie

8,025 posts

208 months

Saturday 5th April 2014
quotequote all
KenJ said:
Thought I'd ask this question to all those with mortgage / finance knowledge on PH.

A few years ago we 'bought' our first home. Basically, we don't have a normal mortgage. We paid about 15% of the value of the house using some money we'd saved up. The rest my father gave to us, which we pay back directly to him. Therefore as far as the banks are concerned we own the property outright. So far, so reasonably simple!

We now want to move somewhere larger for which we'll have to take out a 'proper' mortgage. We also want to keep our existing house and let it out.

My question is; can we take out a bank / building society mortgage using the value of the house we 'own outright' as a deposit / collateral?

Any help appreciated.
If you are asking if you can re-mortgage your current property to release funds for the deposit of the second property, then yes you can.

Sir Bagalot

6,463 posts

180 months

Sunday 6th April 2014
quotequote all
Sarnie said:
If you are asking if you can re-mortgage your current property to release funds for the deposit of the second property, then yes you can.
But..... let them know you'll be letting it out in the future