Second home mortgage

james 17 · 11-10-2019 10:26am #1

Hey just looking for some advice or the way forward,so I'm thinking of looking into buying a renovation project as second house (Should I say it's a buy to let or second home mortgage)we currently have a mortgage left of 80k or about 10 years ,would like to borrow maybe about another 80/90k.im a self employed carpenter and wife works in public sector and we have one child, I'm 36 and wife 31. We wouldn't have that much savings 6/7 k we spent a lot of money around the house this year but should b fit to save good bit more from now on. My question is what would be my steps forward, look to get top up on existing mortgage/get loan through my business or someway else ? Any one have any advice . thanks in advance.

briaineo · 11-10-2019 10:51am

I’d be thinking the handiest way to get the money would be to remortgage your existing property.

But there maybe some avoidable ramifications both for tax reasons and if things went sour by doing it a different way:

If you were to keep the mortgages separate you may need a 20% deposit as opposed to 10% like you currently have in savings.... very interested in the replies you get as may also do something similar down the line

james 17 · 11-10-2019 10:15pm

Forgot to mention the mortgage is in wifes name only(wernt married and I was unemployed at the time).

moonlighting_1 · 11-10-2019 10:18pm

very hard to get a mortgage on a fixer upper.

james 17 · 12-10-2019 4:44pm

So when you remortgage your house is the money just to be used for say extension or fixing up your existing house ,or can money be used elsewere ?

unklerosco · 12-10-2019 4:49pm

moonlighting_1 wrote: »

very hard to get a mortgage on a fixer upper.

Brother in law got one the other day, wasn't too much trouble. He just had to list off what work needed to be done. He's a plumber by trade so will be doing the bulk of the work himself and was able to accuratly cost out the works. Bank where happy with that. Other than that the process was no different from a normal mortgage...

Although I'm sure the deffenition of a fixer upper is fairly broad... This house had a roof n walls n you could technically live in it. If it's a derilict building missing half a roof and a tree growing out of it im sure it's a different story.

james 17 · 12-10-2019 5:40pm

unklerosco wrote: »

Brother in law got one the other day, wasn't too much trouble. He just had to list off what work needed to be done. He's a plumber by trade so will be doing the bulk of the work himself and was able to accuratly cost out the works. Bank where happy with that. Other than that the process was no different from a normal mortgage...

Although I'm sure the deffenition of a fixer upper is fairly broad... This house had a roof n walls n you could technically live in it. If it's a derilict building missing half a roof and a tree growing out of it im sure it's a different story.

Do you know did he go remortgage route or seperate mortgage ?

unklerosco · 13-10-2019 10:02am

james 17 wrote: »

Do you know did he go remortgage route or seperate mortgage ?

New mortgage

james 17 · 23-10-2019 8:36pm

Just hard to know what way to go about it to bank,new mortgage,remortgage or a business loan....does anyone know whether you can go to bank and ask them which way to go about it or should I get advice first from other source and then go to bank ?

unklerosco · 23-10-2019 9:47pm

A financial advisor, good mortgage broker should be able to help you there.

james 17 · 31-10-2019 10:12pm

So got talking to bank yesterday and he emailed back today , saying they could release 75% (of house to buy and price to complete works) and that we would have put up 25% .it would take a lot of saving to get to that so will have to see if there any other options or forget about it.

Second home mortgage

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