We want to buy an investment holiday let and are in the lucky position of being mortgage free on our main home. We want to take out an offsetting mortgage on that to finance the purchase, and our bank agreed an offer in principle last week of £252k (our house is worth (£850k so only a small ratio being borrowed).
We are interested in 4 apartments in a new block, all at slightly differing prices, and will also be using savings as well as the mortgage on our house. Despite agreeing in principal that we can have the £252k, they won't proceed to the underwriters to guarantee until we can get our solicitor to write a letter guaranteeing that we haven't got a mortgage on the flat we want to buy.
As we don't know how much they'll lend, we don't know how much we can offer, and they are all different prices. Surely a solicitor won't say we don't have a mortgage on a flat we don't already own. I'm confused.
Has anyone come across this before?
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Unusual legal technicality of mortgage
7 replies
PersilOrAriel · 09/03/2017 19:20
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