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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.

Asked on Mar 13 2012, Home Finance in Glasgow | Report content

Answers (3)

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  • Why don't you get a BTL mortgage on the flat and use that as the deposit on the house?

    Answered on Mar 13 2012, Report content
  • Then I'd end up with 2 mortgages...

    Answered on Mar 13 2012, Report content
  • I would speak to a financial adviser o0r broker about this but I would imagine they will recommend you take out some of the equity from your flat as the deposit for the house.

    Answered on Mar 20 2012, Report content

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