Posted on 3 March 2011 by Simon
Hi, I have a flat valued at £625k and a mortgage of £406k. I would like to purchase a holiday home for approximately £250k. I have c.£130k to use as a deposit and my annual income is £97k. What is the maximum I would be able borrow for the holiday home with the aim of minimising the amount put down as a deposit?
There are Lenders who will consider lending up to 85% of the property value, but the restricting factor here is going to be your income. With no other commitments except the existing mortgage it would theoretically be possible to borrow up to £160,000. However, allowance must be made for your normal monthly expenditure, if you have any dependents and your existing monthly mortgage payments. This is likely to bring the amount down to £100,000 or less.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 tell the consultant the date and title of your question, they will be able to look at your situation and advise you accordingly.
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