We're looking to buy a second home. What are our options?
Posted on 23 August 2013 by Paul
Hi, We want to purchase a 2nd home for £375K which has been accepted. We want to put down approx. £50K and borrow the rest. Our annual income is over £200K. I am self employed and my wife is employed. Our mortgage for our main residence is £206K. The house is worth approx. £500K. What are our options? Kind regards, Paul.
This sounds like a relatively straight forward case, which means that you should have a good level of options. The loan to value at just over 85% will be a little high for some lenders, but there would appear to be more than sufficient income to support the total borrowing.
We would need to speak to you in more detail around your personal financial situation, before being able to recommend the most suitable product. We'd also need to get an understanding of what product features would be important to you. Whether you'd want a product with an offset facility, or one where you can overpay, take payment holidays, etc..
However, generally speaking with interest rates at record lows, more and more borrowers are opting for longer term fixed deals, especially as rates are unlikely to get significantly cheaper.
I'd suggest it would be maybe worth having a discussion with one of our consultants to look at what options are open to you in more detail. If you can let me know when would be best for you, I can arrange a convenient time for one of them to contact you.
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