Can I borrow more to by a repo?

Posted on 15 February 2011 by Gilian

I currently have a mortagage of £37k on a house value of £105k.  I have loan and credit card debts of £12k and a salary of £42.5k. Would a lender lend me £130k to buy a repo on top of my existing mortgage?


There is a chance that a Lender would grant you a mortgage of £130,000 on top of your existing £37,000, but I think that they would want to split the debt between the two properties. This would depend on the state of the repossessed property, they tend to be neglected and in need of repair and maintenance, and how the valuation stacks up compared to the purchase price.

Every Lender will want to know what your intentions are once you have purchased the property as this will determine whether you will need a residential, buy to let or commercial mortgage. If the property does need renovation it could well be that you need to borrow more than £130,000, unless you have savings in the background and I would recommend that you cost these out before agreeing to the purchase.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the adviser the date of your question, they will be able to look at your situation and take it from there.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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