Second Home for Work

Posted on 20 May 2012 by Liza


I want to buy a 2nd property to live in for 3/4 dats a week due to work, can I do this by using the equity in my current home?

Liza

You have a couple of options open to you, either raise all the money on your existing property or raise the deposit on it and take a mortgage out on the new one.

There are several Banks and Building Societies who will consider lending on a 'pied-à-terre', usually up to 75% of it's value and they will want to see that you can afford the higher mortgage commitment, are not intending to let the property and that it's location makes sense when considered against where you live and work.

The cheapest option for you, if you have sufficient equity in your current home, would probably be to approach your existing lender for a Further Advance.  There will be an administration fee and probably a new valuation fee and a product fee to pay, but other than that you will only need to consider the interest rates they can offer.  However, it is possible that the wider choice of mortgage rates available elsewhere means it is cheaper to raise the mortgage on the second property.

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 help you find the right solution for your situation.

Peter

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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