Remortgage - Recommendations?

[BigDataPro]

Never done this before and very new to this concept. So please go easy.

I am considering buying another property which will be financed through equity release of my current property. Around £40,000 balance left to be paid on current one. Current property is worth around £250000. The another property I am aiming to buy is around £275000.

Is it easier to try current mortgage lender or through contractor specific mortgage companies (like Contractor Money etc). Does any one know any contractor friendly remortgage advisors?

Are there any specific pointers that would make or break the likelihood success/failure in getting the mortgage?

[scooterscot]

A remortgage refers to a new mortgage on your current property. You're wanting a 2nd mortgage. Speak to a financial advisor.

Much will depend if the 2nd home is for your own use or as an investment (not a good time in the UK marketplace).

[ladymuck]

A remortgage refers to a new mortgage on your current property. You're wanting a 2nd mortgage. Speak to a financial advisor.

Much will depend if the 2nd home is for your own use or as an investment (not a good time in the UK marketplace).

Not specifically, you can remortgage to release equity. That's more usual for home improvements or debt consolidation rather than for buying another property, I suspect.

I wouldn't take advice from here ... get a proper advisor on the case. There's many a thread recommending the ones that work with contractor-friendly lenders.

[northernladuk]

What are you doing to do with the 2nd property? If you are going to let it then you won't be able to get a residential mortgage.

Freelancer Financials are a contractor specialist and I've used them for the last 6 or 7 years to get my first contractor mortgage and re-mortgage to better rates over the years.

They also handle my BTL mortgages so offer me the full suite instead of having to go them for one mortgage and another for the BTL's.

[Zigenare]

What are you doing to do with the 2nd property? If you are going to let it then you won't be able to get a residential mortgage.

Freelancer Financials are a contractor specialist and I've used them for the last 6 or 7 years to get my first contractor mortgage and re-mortgage to better rates over the years.

They also handle my BTL mortgages so offer me the full suite instead of having to go them for one mortgage and another for the BTL's.

I can also recommend John Yerou and his people, excellent service.

[kaiser78]

You also need to factor in higher rate stamp duty for second home property, as this is how the purchase will be treated.

[Lance]

You need a 2nd mortgage as well as a remortgage to release the equity for your deposit.
You're close to paying off the main mortgage so why not do that, save some and buy #2 outright using equity release and cash? That way you have one mortgage that will cost less as BTL's aren't as good rates.

[BigDataPro]

Thank you. The 2nd property can be my main residence if there is an option to reduce Stamp Duty (while the current main residence will be let out). Location wise they are very near by - just 50ft.

The reason for equity release is to fulfil the deposit needed (30% LTV) so that it will get a good interest rate.

My current Cash Warchest is good but cannot be used for this. I have invested my savings on a property elsewhere, so I need to raise money for deposit.

[dogz111]

Thank you. The 2nd property can be my main residence if there is an option to reduce Stamp Duty (while the current main residence will be let out). Location wise they are very near by - just 50ft.

The reason for equity release is to fulfil the deposit needed (30% LTV) so that it will get a good interest rate.

My current Cash Warchest is good but cannot be used for this. I have invested my savings on a property elsewhere, so I need to raise money for deposit.

There is no way to avoid the increased stamp duty unless you sell your primary place of residence.

Additional stamp duty starts at 3% and increases as per the normal thresholds

[WTFH]

My current Cash Warchest is good but cannot be used for this.

Why not?

I can understand someone saying "I don't want to use it for this", but to say "it cannot be used" - what's the reason?