Hey! I’m waiting to speak to a mortgage broker about this but trying to get some options in my head before that. I’m a first time buyer, my partner owns an inherited property so we’re both pretty new to mortgages and feeling a bit clueless.
basically, we’ve had an offer accepted on a house. We have approx 50k, but we’re liable to additional stamp duty of 22k due to owning another property. We also need to keep 10k back for fees and a payment above the valuation as our offer was over the asking price. This leaves us 18k. We can either try and go for a 95% mortgage, or remortgage a small portion of the owned outright property to bump us up to a 10% deposit. I have no idea if it’s better financially to remortgage and hopefully get a better rate on that amount, to offset the slightly higher rate we’re getting on the main mortgage…
with a 5% deposit, we’re looking at interest rates of approx 5.35%. With 10%, we can get approx 4.5%.
basically, what would you do with the breakdown of that 50k, and potentially remortgaging a mortgage free property? Any ideas I haven’t thought of would be amazing! Appointment with the mortgage broker is this week but I’d like to be prepared!