help! need to raise money for second home

[pocoyo1]

Hi, my partner and I have separated. I have found a home for my children and me.will be perfect for us.
Due to the present housing climate, we 've decided not to sell the former family home, we suspect may even be in negative equity
if we were to sell.

However to acquire this new home , I will need to deposit of 30k. I need to explore current mortgage products and offers also. Any Financial advisors with and advice, or any one?

why cant you live in the home you have and your partner move out?

Or rent somewhere, or rent out your house?

jax- even if partner moves out and home rented, will still need deposit.
also can not afford mortgage long term.

Can you rent somewhere for you to live?

we could, have made a mistake of falling for this house

Well, if you haven't got 30k or family who can lend/give it to you, you will have to rent. That's it really. Unless you can persuade someone to give you a 100% mortgage, which is highly unlikely. Sorry, but falling for a house you can't afford is a bad idea!

If the present mortgage is in both your names then the amount owing on it would be deducted from what a lender would be prepared to lend you on the new property.

Lofty - do you mean even if we do not sell?

Do you mean that you have no deposit and your current house is in negative equity? If that is the case then I don't think you've got any chance of finding a lender (even a specialist one) who will give you a mortgage.

Do both you and your ex partner work? Can you/ him afford to keep paying your current mortgage and the rent on a new place?

You will have to switch the residential mortgage to a buy to let otherwise the bank will only lend you the set multiples less that amount.If you let the house they take the rental income into account and you could borrow more. Tbh if you are separating and setting up a new home the last thing you need is the stress of mortgages brokers etc for a property you can't really afford! Rent until the dust settles

Pocoyo

Yes, if you did not sell then your current mortgage would be viewed as a debt and would be deducted from any new mortgage offer.

Noddy is right about converting your current mortgage to a buy to let one, however, there are very few companies offering btl mortgages.

Tis grim.

Financially, it might make more sense to rent than to buy, even if you could come up with the £30k. If that £30k is less than 20% deposit, the interest rates (cica 5-6% for a 2 year fixed) is higher than rental yields for the exact same house, and you're better off renting a house in the same street and neighborhood and paying only like 4% rental instead of 5-6% interest, and save the difference over the years to build up your deposit.

Also, don't forget that rents include all repairs to the house, might include furnishings, and also includes building insurance. Owning your own property offers all those liabilities on top.

Thanks all, will look into renting,
do not want to move far due to children schools