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  • FIRST POST
    • Ourvi
    • By Ourvi 4th Oct 17, 8:55 PM
    • 2Posts
    • 0Thanks
    Ourvi
    Buying second home for relative to live in
    • #1
    • 4th Oct 17, 8:55 PM
    Buying second home for relative to live in 4th Oct 17 at 8:55 PM
    Dear all,
    After some advice. I'm on a good income and I already have a residential mortgage. I've just had an offer accepted on a second home that I want to buy for a relative to live in rent free. I'm buying it because I'm in a good position and have a healthy deposit. I'm worried that the banks will not give me a second residential mortgage because I don't plan to live in it. Is there any way that I can get this second home?
    Thanks
Page 1
    • marliepanda
    • By marliepanda 4th Oct 17, 9:01 PM
    • 4,858 Posts
    • 9,790 Thanks
    marliepanda
    • #2
    • 4th Oct 17, 9:01 PM
    • #2
    • 4th Oct 17, 9:01 PM
    Dear all,
    After some advice. I'm on a good income and I already have a residential mortgage. I've just had an offer accepted on a second home that I want to buy for a relative to live in rent free. I'm buying it because I'm in a good position and have a healthy deposit. I'm worried that the banks will not give me a second residential mortgage because I don't plan to live in it. Is there any way that I can get this second home?
    Thanks
    Originally posted by Ourvi
    First of all, do you understand the meaning of the word 'residential.'

    When you understand that, please ask the question again...
    Survey Earnings 2017 - £163
    • G_M
    • By G_M 4th Oct 17, 9:03 PM
    • 42,255 Posts
    • 49,059 Thanks
    G_M
    • #3
    • 4th Oct 17, 9:03 PM
    • #3
    • 4th Oct 17, 9:03 PM
    As you will not be living there you will need a BTL or 2nd home mortgage.

    And many lenders won't approve of a relative in a BTL property.

    Go and see an independant financial adviser.
    • kinger101
    • By kinger101 4th Oct 17, 9:08 PM
    • 3,951 Posts
    • 5,412 Thanks
    kinger101
    • #4
    • 4th Oct 17, 9:08 PM
    • #4
    • 4th Oct 17, 9:08 PM
    In addition to the mortgage problems highlighted, it's really a bad idea from a taxation perspective. I'd second the comment on seeing a financial advisor.
    • Ourvi
    • By Ourvi 4th Oct 17, 9:12 PM
    • 2 Posts
    • 0 Thanks
    Ourvi
    • #5
    • 4th Oct 17, 9:12 PM
    • #5
    • 4th Oct 17, 9:12 PM
    Thanks G_M for your reply. I know that the BTL mortgage Is not appropriate in this case as it's for a relative to live in. I wondered whether anyone else has been in my position and had the second home mortgage approved.
    • Lysimache
    • By Lysimache 4th Oct 17, 9:19 PM
    • 87 Posts
    • 37 Thanks
    Lysimache
    • #6
    • 4th Oct 17, 9:19 PM
    • #6
    • 4th Oct 17, 9:19 PM
    As a residential mortgage?
    • G_M
    • By G_M 4th Oct 17, 9:25 PM
    • 42,255 Posts
    • 49,059 Thanks
    G_M
    • #7
    • 4th Oct 17, 9:25 PM
    • #7
    • 4th Oct 17, 9:25 PM
    as advised - speak to a mortgage broker.

    Or post on the mortgage board here.
    • Slithery
    • By Slithery 4th Oct 17, 9:29 PM
    • 358 Posts
    • 516 Thanks
    Slithery
    • #8
    • 4th Oct 17, 9:29 PM
    • #8
    • 4th Oct 17, 9:29 PM
    As you aren't going to be resident it will have to be a BTL mortgage, the problem is finding one that lets you rent to relatives.
    • 00ec25
    • By 00ec25 4th Oct 17, 10:15 PM
    • 5,554 Posts
    • 4,933 Thanks
    00ec25
    • #9
    • 4th Oct 17, 10:15 PM
    • #9
    • 4th Oct 17, 10:15 PM
    Thanks G_M for your reply. I know that the BTL mortgage Is not appropriate in this case as it's for a relative to live in. I wondered whether anyone else has been in my position and had the second home mortgage approved.
    Originally posted by Ourvi
    you are NOT buying a second home

    you are trying to buy a property which your relative will use as their main home, not your second home. As such any mortgage on it will be a Regulated Buy To Let mortgage. That means your borrowing ability will be based on your affordability, not the the rental income multiple normally used for BTL (as there is none).

    you may need to go via a mortgage broker as there are a limited number of lenders who deal in regulated BTL mortgages. Inevitably if you google you will find a fair few who offer regulated mortgages via websites, note the higher deposit required compared to other BTL
    • somethingcorporate
    • By somethingcorporate 5th Oct 17, 8:41 AM
    • 8,845 Posts
    • 8,533 Thanks
    somethingcorporate
    We looked into this a few years ago - regulated BTL is very expensive and a tiny lending market. In the end we just gave them the deposit and they bought the house in their own names.
    Thinking critically since 1996....
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