buying a second home - advice please?

gugz · Joined: 23 May 2009 Posts: 1

Hi all, first of all I am new to this forum so hello everyone.
Okay this is our problem...hope you can help / advise.
We have owned our own house for 10 and a half years...our outstanding mortgage is approx £50k with a remaining term of 15 years - we have made regular overpayments for a number of years and have approximately £8k in the mortgage reserve account - (which will reduce the term and amount f interest payable towards the end of the mortgage) - we don't want to sell our current home we wish to let it out - the rent payments would more than cover the monthly mortgage...we have seen another house which we would like to put an offer on which is £270k - we have £30k of our own money to put as a deposit and asked our current lender to loan us another £40k (which they approved) from the equity from our current home, so we can put down a deposit of £70k and borrow the remaining £200k from another lender - but we have been told we may be rejected the £200k because the current mortgage and £40k on top will not go in our favour - even though we can prove we are able to pay the monthly payments for both houses if for example the current house is not let for a few months...! what should we do?? We really dont want to sell if we dont have to as we would like to have something (a nest egg so to speak) for our child's future.

Any advice would be gratefully recieved. :)

kattieclinton · Joined: 19 May 2009 Posts: 1

{link removed}

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Katie, we do not allow the posting of links in threads unless there is accompanying text that helps the original poster, and generally speaking making a habit of posting links in your responses does not promote this community, and therefore we would appreciate it if you will limit your posting of links.