Second Property

Posted on 28 February 2011 by Susan


I own 1 x 3 bed house in the Midlands. There is no mortgage on it. When it was last valued in 2005 the valuation was £100,000. I receive £4100 rental income per year and I have £10,000 in savings. Can I use the house as a guarantee of some sort on another property without selling or remortgaging, in order to purchase another property? (I earn £65,000 per year, and I want to buy a flat in London for £320,000 with my brother who earns £20,000 per year).

Susan,

I think this is going to depend on what your intentions are for the new property. Are you going to be living there with your brother or are you just helping him onto the property ladder and going to be living elsewhere? It will also depend on what other financial commitments you have, including whether or not you have a mortgage on where you are living at the moment.

I regret that without more information I am unable to give you a definitive yes or no. Please call on 0344 346 3672 and one of our mortgage consultants will be able to advise you properly.

Peter

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