getting 2 mortgages/2nd mortgage

[duncancallum]

Right this sounds a bit daft but anyway here we go

Myself snd SWMBO have seen a house thats up for sale at a real steal and just what we want. However its an bank repo. And as such has no chain and they have a ugre to get rid quick.

The problem stems from ours not being up for sale and needing a bit doing to it to flog it (which we are underway doing). So basicly is it possible to get a 2nd mortgage on this new house and re mortgage this one on a veiw to selling it ASAP or vise versa.

I dont have a huge amount of equity in it so I am not looseing a huge amount that I can use as a deposit. I have a 10% deposit already for the cost of the new one ad the inlaws have said they would loan us some cash.

Any suggestions from those with a financial bent?

Cheers

Duncan

[scirocco265]

How much of a desposit do you have and what's your credit rating like? Unbelievably, it is (relatively) easy to get a second mortgage nowadays.

[Road Pest]

I don't get why you need to remortgage the one you have at the moment? It's just a straight purchase of a second home, which is fine as long as you can afford both mortgages, subject to credit checks and normal lending criteria. 10% though isn't a great amount, 25% deposit is what you'll want to get a good deal on a purchase. On top of that you'll need stamp duty, sol fees, etc.

You mention that you don't have a lot of equity in your current house. IME people tend to over value their house (i.e. what the bank/surveyor would say it's worth. I'd be making sure that you have enough to cover the sale.

[Pickled Piper]

Are you looking at remortgaging the first to raise a deposit for the 2nd?

Nothing extraordinary about having two mortgages. As stated above, providing the lender(s) are satisfied you can afford both of them it and you meet the criteria for LTV etc.

pp

[duncancallum]

sorry for the delay in replying

I have raised a 2nd mortgage on the new property I want and have a 15%deposit. The rates good but not briliant due to the 15% not 25% deposit.

Offers in accepted just waiting for the survey now and that should be it.

Need to sell the current house asap or rent it out. as the 2 mortgages are crippling I would rather rent it but SWMBO isnt keen on that idea.

[scotal]

Have you applied for permission to let from your current lender?
Have you put the wheels in motion to get the place let?
Have you investigated changing your builldings insurance to make it compatible with a let property?

[duncancallum]

At the momoment the property I am buying isnt habitable, I cant understand the sort of people who lived there its disgusting.

I am putting this property on the market to sell, estate agents in on friday to mesure up and take photos.

The plan is to sell it on cheap for a quick sale however it depends on the market. If I cant sell within 3-6months I will rent it out. I have contacted my current lender and they have no issue with the change of use.