Hi Pigeon

This is relatively easy and a more common situation than you'd imagine.

Your main 'lookouts'.

The best mortgage for you will have no 'High Loan to Value Fee' and no 'Redemption penalties'

From there, it wil probably be good if it had no booking/arrangement fee, but this would be a maths exercise to compare products with fees and without.

The rates for these products won't be fantatsic - 5.5%ish I'd have thought, so from there are two further ideas - can you scrape together a 10% deposit? It'll widen the options, although I daresay you'd need to check those options before seeing if it was worth the trouble. The other option is if you can plan on keeping 'House 1' for 2 years or more - then the idea of having redemption penalties for the 1st 2 years only would become acceptable.

There is a plan 4, looking at offset mortgages with redemption penalties.

Give me a call if you want to look at some figures, it sounds like alot to consider, but the 1st 2 rules narrow things down enough to make things quite simple.

Adrian Garside
01489 784022

Hi there,
This is our situation.
We currently own outright a 2 bed semi worth £145K, no mortgage.
We would like to keep the first property for a year or maybe longer as our neighbour is doing building work and we feel this will have a detrimental affect on our property value/saleability, we would like to rent it out for a while maybe perminently.
We need to arrange a mortgage for a 2nd property, our ideal home with a fixed asking price of £170K.
We have £10K for a deposit, no loans or c/card debts.
We would be looking for a 20 year term joint mortgage, our combined income is £55K.
We also have an endowment which should be worth £20K in 10 years from our 1st house.
We would like the option to pay off early without penalty if/when we sell our 1st house.
What are the best options for us.

Many thanks in advance for any advice.