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  • FIRST POST
    kelz85
    two residential mortgages?
    • #1
    • 9th Nov 08, 8:19 PM
    two residential mortgages? 9th Nov 08 at 8:19 PM
    Im trying to work out the best way to move house (we need a bigger one now with the kids).
    We currently live in a house with a mortgage of 300 PCM that we can rent out for 600. We are on a discounted rate which costs 3000 to get out of so dont want to sell for another two years, when the discounted rate comes to an end and hopefully house prices are up a little bit.
    We have seen another house, its 200k and we can put down 50k deposit, but obviously we want the lowest possible monthly payments.
    The question is: can you have 2 residential mortgages at the same time if you dont rent them out? Can you have a residential mortgage and a self cert mortgage or does that count as 2 residential? I didnt really want to get a buy to let but is this the only way round this?
    Sorry if ive been blonde but im clueless to this side of things!
    Thanks!
Page 1
    • hethmar
    • By hethmar 9th Nov 08, 11:28 PM
    • 10,380 Posts
    • 9,826 Thanks
    hethmar
    • #2
    • 9th Nov 08, 11:28 PM
    • #2
    • 9th Nov 08, 11:28 PM
    Many people are in a similar situation where they have to move but cannot sell their current place. Speak to your lender about the idea - they will likely give you a go ahead to rent your current place and then sort the mortgage for the new one if everyone seems feasible.
  • Fairdo
    • #3
    • 10th Nov 08, 12:39 AM
    • #3
    • 10th Nov 08, 12:39 AM
    Basically, you can ask your current lender for "consent to let". Now they are fairly likely to provide this, based on the fact that it is a poor market for selling at the moment and this gives them the opportunity to ensure their mortgage payments are maintained.
    The new lender could allow you to take out a "Let to buy" mortgage, if they are in this market, of course. The benefit of this would be that, if you can prove to the new lender that your mortgage payments are at least being met by the rental income on your existing home, they should ignore your mortgage payments as a commitment and allow your new mortgage based on normal affordability criteria.
    I am a Mortgage Adviser

    You 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.
  • lulu999
    • #4
    • 10th Nov 08, 11:26 AM
    • #4
    • 10th Nov 08, 11:26 AM
    I've found banks to be very flexible and accommodating on this in the past. I previoulsy had three properties with three separate mortgages, non of which were let, and were all residential.One was my 'main' home, another my work 'pied-a-terre', and the third was my 'holiday' home! As long as you fit within their borrowing requirements (ie multipliers, deposit etc) I found they will do most things to help. All they're concerned with is risk. If you're not a risk they'll lend (if they have the money)!
  • mic200202
    • #5
    • 10th Nov 08, 1:43 PM
    • #5
    • 10th Nov 08, 1:43 PM
    You can have a 2nd residential mortgage.You need to choose the correct new lender (via your broker) who will asess the existing mortgage correctly.Some will treat it like an outgoing (ie like a loan) which will affect your borrowing capacity.But you have the rental income that may be able to be used to offset this.
  • kelz85
    • #6
    • 10th Nov 08, 9:10 PM
    • #6
    • 10th Nov 08, 9:10 PM
    Thanks everyone, ive called my current mortgage provider and they said they can give me consent to let if i fill out the forms and pay 125 fee. Does this mean I can apply for another residential mortgage then cos nobody that I spoke to today seems to know!
    • hethmar
    • By hethmar 10th Nov 08, 9:22 PM
    • 10,380 Posts
    • 9,826 Thanks
    hethmar
    • #7
    • 10th Nov 08, 9:22 PM
    • #7
    • 10th Nov 08, 9:22 PM
    You mean your mortgage provider couldnt answer that? Can you not get the mortgage from them for the new place?
  • kelz85
    • #8
    • 10th Nov 08, 9:43 PM
    • #8
    • 10th Nov 08, 9:43 PM
    no seriously, I got transferred to 5 different people, one even cut me off, and nobody seemed to be able to give me an answer!
    Im with standard life bank, and their rates arent very good as they are still deciding about passing on the rate cut or not so didnt really want to use them again, they wouldnt be able to offer me the same discounted deal I have now.
  • Tiddler
    • #9
    • 10th Nov 08, 10:36 PM
    • #9
    • 10th Nov 08, 10:36 PM
    Is the deal you have portable? If so you could take your mortgage over to your new home (T&C's permitting) possibly borrow some more money on their current deals.

    Alternatively if the rent allows you could borrow some more money on a Buy to Let mortgage on your current home, so that you can reduce the borrowing on the new mortgage.

    Hope that makes sense!
  • mic200202
    The short answer is yes you can! I advise you to speak to a broker to sort the best deal and make sure the new lender looks at the existing mortgage correctly.
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