Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

Use House as Deposit

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Use House as Deposit

    Odd situation. I'm a first time buyer, been saving for a deposit for 15 years, but no eventually have a well paid job. I can get a mortgage on a 300-400k property, and have saved 70 k as a deposit. What Im wondering, could I buy a small flat for 70k without a mortgage, then I get a rental income going forward, but use the 70k equity in the property as the deposit against a 300-400k house?

    If my logic makes sense, will a bank accept the deeds to a property as a deposit?

    Comment appreciated.

    Rob

  • #2
    Re: Use House as Deposit

    Rob,

    not really in short - some lenders used to offer 'cross security' deals but these are now restricted to private banks who would be looking for much more equity from you.

    it may be an idea to stretch your deposit on the purchase (90% mortgages just about exist, albeit they are expensive) and keep some back for a buy to let (you may get 80% on this side, again quite difficult to find and they are expensive)

    On balance, i would pump all your cash into your main residence and then ask for a further advance or remortgage in 2-3 years time and start your buy to let empire then!
    Large mortgages and High Net Worth Mortgages from enness private clients

    Comment

    Working...
    X