Posted on 18 May 2011 by Jake Squires
Have a house worth £110,000 and a mortgage of £27,000. Is it possible to borrow £40,000 against the house and use as a deposit to buy another house? My partner and I wish to live separately, but she does not want to risk the home she is in.
My first reaction was as long as you have the income to support both mortgages then there is no reason why you shouldn't be able to raise an additional £40,000 on your property. There is certainly the equity available to do so. The cheapest way to do this would probably be via your existing Lender by way of a Further Advance.
However, I am not clear about whose names are on the current mortgage and whether the new property will be bought in joint names or just your partners. I feel that you need to take independent legal advise before you proceed with raising the funds to make sure that you are adequately protected. The last thing you will want is to raise £40,000, hand it to your partner and then part company with both, leaving you with just the outstanding debt.
If your existing Lender is unable to or unwilling to help, I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.
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