Remortgage query

pam27

Hi

Query - Does any one know the following;

My husband owns a house(purchased before we met) in another part of the country this is rented out covering the mortgage on it. We are currently renting a house in the midlands the last 10 + years. We have got notice the the owner is selling and offered 1st refusal. We would be interested in buying.

Does anyone know is it possible to remortgage the house for a deposit to apply for a mortgage for the house we are living in..... Apologies in advance if this is a silly question. Just clueless and a bit panicked with the current state of things !!!!!! Thank you :-)

Calculator123

The best thing to do is to call a few banks. Everyone's situation is different and your circumstances/savings/relationship and employment all play a part.

My own recent query on a similar note was no, you cannot use the equity in one house, to use as deposit for another. (Unless of course you were selling the first house).

Central Bank rules seems to restrict equity release to items like home improvements, settling capital gains/inheritance tax or medical expenses. It used to be the case that equity release could be used for deposits but that was abused during the Celtic tiger era.

Word of caution. If your husband bought the first house as a principle primary residence, the bank may insist he now moves to the Buy to Let rates (higher), if not currently residing there.

Also, he would probably not be considered a first time buyer, so you may need at least 20% deposit.

pam27

Thanks for replying yep figured as much.yes we have tried to sell but the house is in Donegal and we would need to get a mica test done which I believe is in the region of 6 or 7 thousand....it's the 20%deposit that's the issue.....thank you