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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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Hi- I have a 500k house which I own outright. If I want to

Resolved Question:

Hi- I have a 500k house which I own outright. If I want to buy another house for 1m, can I use my current house as collateral for my. 500k deposit and just get a 500k mortgage to buy the other house?
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

What you are suggesting if perfectly possible. What you are actually proposing is the bank giving you a 100% mortgage on the second property on the basis that they will have two first legal charges on £1.5million worth of properties.

The only issue is you would need to convince a lender to give you this product as it is not an every day.

I also suspect you might find it easier to convince a bank to lend on this arrangement if the first property had tenants in it paying rent. This offers added security as the property would also be generating an income with which to service the debt.

Can I be of any further assistance?

Kind regards

AJ
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