Posted on 4 March 2013 by Julian
Hi there, I am currently living in a flat (by residential mortgage), I am selling it and buying another bigger flat. My salary is enough for me to get the residential mortgage for the next one, but when do I have to sell the 1st flat? Because if I do not, I will have two residential mortgages which is, I assume, against the law?
It isn't against the law to have two residential mortgages, many people have second homes with regulated mortgages on them, however the lenders will want to know what your intentions are. If you can afford both on your current income, then it's not so much of an issue, however if you couldn't affored both, then usually there will be a condition on the offer relating to the simultaneous completion on the sale of your current property and purchase of your new property.
One point to consider, is when you've sold your current property, will you want to reduce the size of the new mortgage? If the answer is 'yes' then you need to consider a product that doesn't have any penalties for lemup sum payments.
If you would like to find out more, then please let me know and I'll arrange a convenient time for you to talk to one of our consultants.
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