Can I use a full owned property as deposit/security for a mortgage on another property?
I fully own my flat, it's worth around 40-60k (not been valued since I bought it - basing the figure on initial value and selling prices of others in the area currently) I've seen a house I would like to buy, I can afford a mortgage on it fine but don't have the initial deposit. Can I secure the new house against my property and then rent out my existing one? So basically if I was to default they would get two properties for the price of one? As my flat would definitely be worth more than what the bank would require as a deposit.
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