willman   10 #1 Posted March 29, 2019 Basically my house is paid for but w're looking to purchase a holiday home (not to rent out). So would i be applying for a remortgage or a new mortgage on my current house.  It was just a thought as the deposit for a new place would wipe me out but borrowing 25% of the value of my current home would buy what we want.  Share this post Link to post Share on other sites Share this content via...
hauxwell   243 #2 Posted March 29, 2019 (edited) The man you need to talk to is Jeffrey Shaw.  He should be able to advise you.  He is a moderator on here.  Edited March 29, 2019 by hauxwell Share this post Link to post Share on other sites Share this content via...
Chez2   10 #3 Posted March 29, 2019 7 hours ago, willman said: Basically my house is paid for but w're looking to purchase a holiday home (not to rent out). So would i be applying for a remortgage or a new mortgage on my current house.  It was just a thought as the deposit for a new place would wipe me out but borrowing 25% of the value of my current home would buy what we want.  Can't the company you are getting your mortgage with answer that?  We were in the same boat as you eleven years ago. We raised a mortgage on our home to pay for a holiday home. We had a flexible interest only so we could pay chunks of the mortage off periodically and repay it that way. We almost finished paying the mortgage off when it came to the end of the ten years. We decided to keep the holiday property so we took a small, short term repayment mortgage on the outstanding balance. It was easy and straightforward, no deposit or anything. We had been trying to sort it with Santander who we were with. We had  been discussing our plan two years before the end of the term. We ended up using our usual financial advisor Steve Dilks. He got us a better deal too and sorted the paperwork quickly. He owns RPG Financial in Rotherham, give him a call. We have used Steve for twenty five years. Share this post Link to post Share on other sites Share this content via...
willman   10 #4 Posted March 29, 2019 We havent applied for a mortgage yet but when you're check online it asks for a deposit, well we havent got one or we've got a 75% one. Either way it skews the responses. Share this post Link to post Share on other sites Share this content via...
Robin-H   11 #5 Posted March 29, 2019 7 hours ago, willman said: Basically my house is paid for but w're looking to purchase a holiday home (not to rent out). So would i be applying for a remortgage or a new mortgage on my current house.  It was just a thought as the deposit for a new place would wipe me out but borrowing 25% of the value of my current home would buy what we want.  If you're looking to get a mortgage against a house you already own outright it is called getting an unencumbered mortgage (or remortgage if you had a mortgage but paid it off).  https://www.expertmortgageadvisor.co.uk/remortgage/unencumbered-remortgage/  Share this post Link to post Share on other sites Share this content via...
Chez2   10 #6 Posted March 29, 2019 30 minutes ago, willman said: We havent applied for a mortgage yet but when you're check online it asks for a deposit, well we havent got one or we've got a 75% one. Either way it skews the responses. I would seriously call Steve for a quick chat. I'm not on commission LOL. The standard forms are a nightmare. Share this post Link to post Share on other sites Share this content via...
woodview   10 #7 Posted March 29, 2019 Short answer, it's a remortgage. Share this post Link to post Share on other sites Share this content via...
willman   10 #8 Posted March 29, 2019 But even the lenders can t agree if its a remortgage or new mortgage.  "Technically, a remortgage is where an existing mortgage is replaced with a new one. As your home is mortgage-free, lenders can’t ‘remortgage’. "  I'd like it to be a remortgage so i don't have to cough up a deposit. Share this post Link to post Share on other sites Share this content via...
Robin-H   11 #9 Posted March 29, 2019 50 minutes ago, willman said: But even the lenders can t agree if its a remortgage or new mortgage.  "Technically, a remortgage is where an existing mortgage is replaced with a new one. As your home is mortgage-free, lenders can’t ‘remortgage’. "  I'd like it to be a remortgage so i don't have to cough up a deposit. It's an unencumbered remortgage. You don't need to have a deposit. Share this post Link to post Share on other sites Share this content via...
El Cid   215 #10 Posted March 29, 2019 1 hour ago, willman said: I'd like it to be a remortgage so i don't have to cough up a deposit. 2 If you remortgage your own property, that will get you a £100,000 deposit for the next property; then you apply for a mortgage. Share this post Link to post Share on other sites Share this content via...
Chez2   10 #11 Posted March 30, 2019 On 29/03/2019 at 17:06, willman said: But even the lenders can t agree if its a remortgage or new mortgage.  "Technically, a remortgage is where an existing mortgage is replaced with a new one. As your home is mortgage-free, lenders can’t ‘remortgage’. "  I'd like it to be a remortgage so i don't have to cough up a deposit. Why don't you just call an expert like Steve? As I said, we didn't need a deposit for the UK mortgage.  We didn't want a foreign mortgage so paid a deposit on our holiday home abroad then raised a mortgage on our main property in the UK to pay for the holiday home abroad. Previously the mortgage had been paid off on our home in the UK. Share this post Link to post Share on other sites Share this content via...