ianofbhills
Member
Registered: 10th Feb 01
Location: newcastle
User status: Offline
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I currently have a mortgage on a property I live in up in Scotland but I have accepted a job offer down in Newcastle.
I want to sell my house in Scotland and it is going on the market asap but these things take time and a house sale may take months and months yet I need to be down in Newcastle immediately.
Luckily my parents live in newcastle so I can live there initially, however this isnt ideal nor long term.
I have a sizeable deposit saved already so can i take out a second residential mortgage to buy a property to move in to in Newcastle whilst still paying the current residential mortgage on my property in scotland.
The wages on my new job will cover both mortgage payments.
The house i buy in newcastle will be my main residence.
The house in scotland will be empty and on the market to sell.
I dont want to let out my house in scotland i'd prefer to just sell it.
I dont want to rent down in newcastle I'd prefer to buy.
Can i do that?
Are there any pitfalls to consider i.e tax?
I'm clueless 
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
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I know someone who has/had 30+ mortgages if that helps 
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Graeme
Premium Member
Registered: 26th Jul 04
Location: Northampton
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Yes basically.
Aslong as you have the deposit not really a problem. Aslong as the house in Scotland once sold will pay off the dirst Mortage. Otherwise I would suggest renting it and changing to a buy to let Mortage.
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ianofbhills
Member
Registered: 10th Feb 01
Location: newcastle
User status: Offline
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Yer the plan is to pay off the first mortgage when i sell the house and i wont be making any profit on it.
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luciaadr
Member
Registered: 11th Aug 04
Location: Bexleyheath, Greater London
User status: Offline
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Capital gains tax is payable on the sale of any property that is not your designated main residence. Given the flatness of the property market, the fact that you say you wont make money on it, and the first £10,600 of any gain is tax free anyway, there are no significant tax obstacles.
http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm
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Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
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All the mortgage company will worry about is that you can pay the mortgage on both houses. The fact you are trying to sell the other one won't really matter as there is no guarantee you will so they will just be making sure you can pay for both.
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ianofbhills
Member
Registered: 10th Feb 01
Location: newcastle
User status: Offline
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Yer been doing a bit more research seems like its no problem as long as you can afford both mortgages and have the necessary deposit.
Cheers for the replies, dunno what i was worried about.
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Toby
Premium Member
Registered: 29th Nov 05
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Can you actually 'afford' both though? Given the fact that most lenders will offer 3 x salary + salary on - £25k thats £100k. That's not going to buy much.
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Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
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Specially with the new rules about interest only being tightened up.
I can see the market being stalled for many many years to come due to the ratio of wage:houses being so scewed for such a large %age of houses.
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ianofbhills
Member
Registered: 10th Feb 01
Location: newcastle
User status: Offline
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Without going into willy waving territory I have a really good deposit and a decent wage from this new job so yer i can comfortably afford both.
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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Good for you if that's the case, the point i was making that regardless if you can physically pay two mortgages without any additional income doesn't mean that you will pass the mortgage companies 'means' or 'affordability' tests if you weren't aware.
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ianofbhills
Member
Registered: 10th Feb 01
Location: newcastle
User status: Offline
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yer good point i see what you're saying. I'll see what mr bank man says. Cheers
[Edited on 15-12-2012 by ianofbhills]
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