simplify your life
Question
mortgage advise, only need £10,000 towards cost of home?
hi, i currently own 2 houses, one that i live in and one my daughter lives in, the one i live in is worth £160,000 and the other which my daughter lives in was purchased last year for £75,000 by remortgaging the £160,000 house for £75,000 most of which is still owing, so to simplify things i have one house worth £160,000 which has a current outstanding mortgage of about £70,000 and another home owned outright which now should be worth about £110,000.. we are wanting to sell the £160,000 house and get a house for £170,000 so we need an extra £10,000, could we get another mortgage for this amount with it being so small? or would a loan be better? or remortgage on our second property? our current mortgage is at a rate of 5.25%, any advise on this would be super
8 months ago - 2 answers
Best Answer
Chosen by Asker
A mortgage IS a loan - one that is secured on property. It will be far cheaper to get a mortgage than most other types of loan. If you sell the £160,000 you will need to pay off the existing mortgage. So you will in fact need a mortgage of about £80,000 on top of the £90,000 equity you have in that house. You could in theory remortgage the second property instead, but I suspect that the lender would rather have the mortgage secured on the property it is being used to fund. Either way, you loan to value would be much better by getting the mortgage on the new, more expensive property. You don't say so, but you may have the option to port (or transfer) the existing mortgage to the new property. This would then leave you with needing to find a new loan for the extra £10,000. You may be able to add this to the existing loan. Otherwise there is nothing to stop you getting a new mortgage for the extra. Either way, bear in mind that you will gave various other costs - estate agents, legal, removals, survey, etc, so you may in fact need more than £10,000 extra.
by SimonC
8 months ago
Asker's Rating: 
Other Answers
Natwest have a fixed rate mortgage of 3.79% with reasonable arrrangement fees.
by new nanna- 7 months ago