Two residential Mortgages
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roundabouthere
Posts: 120 Forumite
We are looking at having two residential mortgages running at the same time. (Maybe for 6-ish months)
The house prices are following
Current house
Mortgage outstanding
£115k
Value
£140k
Proposed Second house
Mortgage
£245k
House Value
£300K
Total borrowings
£360k
After roughly six months the first house will be sold with the equity from that more than likely invested.
Income
Mine = £52K
Partner = £47k
No outstanding loans/credit cards
We got an AIP in a branch from the Nationwide around 3 Weeks ago which was talking about potential for £400k+ lending ability but obviously I take these with a pinch of salt and this was also related to just one residential property rather than two.
Is this going to be possible? Currently with the Nationwide so not sure if its something they are able to do or whether a mortgage broker is going to be a far better port of call.
The house prices are following
Current house
Mortgage outstanding
£115k
Value
£140k
Proposed Second house
Mortgage
£245k
House Value
£300K
Total borrowings
£360k
After roughly six months the first house will be sold with the equity from that more than likely invested.
Income
Mine = £52K
Partner = £47k
No outstanding loans/credit cards
We got an AIP in a branch from the Nationwide around 3 Weeks ago which was talking about potential for £400k+ lending ability but obviously I take these with a pinch of salt and this was also related to just one residential property rather than two.
Is this going to be possible? Currently with the Nationwide so not sure if its something they are able to do or whether a mortgage broker is going to be a far better port of call.
0
Comments
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Id suggest a broker... Im sure your thinking im biased but anything less than straight forward (and this is) its never a bad idea to just cut out the messing about and use someone whos been there and done it a few times and knows who to speak to if it hits the fan.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Not at all. I had a feeling these things are better handled by a specialist.
Do you think the figures look like something that are doable or are they looking very extreme for our income level?0 -
They look fine, nothing too concerning on the face of it, its more a case of finding a lender who wont make a meal of it I think.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Thanks for that.
One last question i forgot to ask, do both mortgages need to be with the same lender?0 -
No, as they are both on separate properties it shouldnt be an issue.
I imagine keeping the current one where it is for the time being will be the best bet - otherwise you could end up paying set up fees and exit fees. But im sure whoever you speak to will look into the options.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for all your help
Very much appreciated.0 -
Lenders may wonder why you need two residential properties.0
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Just further to the above. I'm hoping someone may be able to help further.
Our circumstances have changed with respect to my wife who is now almost 3 months pregnant and due to give birth at the start of September
In November we put a early reservation on a new build which is likely to be released very shortly with a price of around 325K for a expected completion date of the start of July.
This means that we will more than likely put down a £50K (15%) deposit to give us a second residential mortgage of £275K. The first residential mortgage on our existing house will be around £112K. All salaries are still as above.
We have got around £12K put aside to cover the shortfall in my wife's average earnings while she's on maternity.
We will also get a letter from her employer (NHS) confirming that she will be going back to work after her maternity finishes.
We spoke to a broker regarding the previous situation before Christmas with two mortgages and they didn't see any problem. Obviously things may have changed if we now declare the pregnancy.
My initial thought was to keep things straightforward due to the early stage of the pregnancy and just not declare it but in the back of my mind, if the site gets delayed and we don't have a completed house until September/October time its obviously at a stage where we will have a dependent to declare and the original mortgage offer will have expired. We will have also signed the contract (probably within the next month or so)with the developer to buy a house which we may no longer be able to get a mortgage for.
Should we go into this process declaring the circumstances and hopefully get a successful mortgage offer which takes into account all of the above or if this going to be a bit of a non-starter now due to the change of circumstances.0
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