It is possible to have two mortgages simultaneously, but lenders will only consider it if your income will support the combined debts. There are two ways they will calculate affordability:
1. They will add the two debts together and apply a multiple to your annual income.
2. They will take the monthly payment for your existing mortgage and deduct this as a monthly commitment before performing their affordability calculation.
If you haven’t done so already, you can check if this route is feasible by increasing your monthly commitments on the Nationwide and NatWest websites.
There is another way of financing the purchase which does not depend on your income and this is known as bridging finance or short term lending. The usual practise is to remortgage your existing property giving you enough funds to put down as a deposit on the new purchase and to cover the interest charged until repayment. The loan term can be anything from a matter of days up to 12 months depending on your circumstances and there are no early repayment penalties. However, the interest rates charged are not cheap and you should not enter into a bridging agreement without a realistic strategy for repaying the loan. In your case this will be from the sale of your property and you will need to be realistic about your chances of achieving a sale before the loan has to be repaid.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 023 8235 2300 and one of our advisers will then be able to help you find the right mortgage for your situation.
