2 Mortgages - Is it Possible?!

Chuffnuts

Is it totally impossible to have 2 mortgages?? I already have a house with a mate but am now looking to buy a 2nd one with my girlfriend. My friend cant afford to buy me out and he’s in no position currently to move elsewhere, an whilst the market is struggling I don’t want to sell anyway as I could end up with nothing or even slightly in debt. The plan with my mate was always to have a house as a retirement fund for that time in 40 years rather than put it in savings. Now the girlfriend is demanding we get our own gaff and I am well keen but am struggling to find anyone who will give me another mortgage. Any ideas?? Or what I can do to free myself up to get another place?

I’m stuck!

atlantis187

My wife has currently go 2 mortgages to her name one with A&L which is the property we rent out and the other one with RBS where we live.

The RBS one was took out after but they never queried this when we signed up.
So basically it is possible for u to have 2 mortgages.

Chuffnuts

How did they miss that she already had another mortgage?! I thought that would be one of the first things they'd check?

Is her other mortgage a buy to let? or are they both standard mortgages?!

Thanks for your reply.

mic200202

Its not a problem to have a 2nd mortgage.The problem is for you to have /get a deposit on a new place,since you are unable to use the equity in the property you already have.Assuming the deposit isnt a problem then its simply down to affordability - worst case can you afford to run 2 houses (if your pal cant pay or does a runner)...some lenders will treat the new borrowing and aggregate the loans you have together ie add the old and new mortgage up then see can you go to that fig on new loan.This is the worst way of doing it.Other lenders will treat the current mortgage like an outgoing ie deduct the amount per month as a loan committment which usually gives you a better borrowing capacity. You could also think about the possibility of buying your pal out (by negotiating a good discount on his equity share) then he could rent it back from you.You could then still go for another loan as above, but with the added extra of owning the 2 properties outright,and with rental income that will cover the mortgage on the old house.

Toughluck

2 residnetial mortgages unless for 2nd or holiday home are a no no. Your mate by the sounds of it can't buy you out and your lender will not let you go as they may think he cannot support the mortgage alone.

Why doesn't he move out in rent or go to parents and get your lender to consent to let it out and then your a free!!!! It is more complicated than that but I can't see how you are going to hide your current mortgage when a new lender does a search on you and starts asking questions about your RESIDENTIAL mortgage.

hethmar

You can do this. In fact I should imagine a lot of people have two mortages shortly as they cant sell their current property and yet have to move. My own family member just got the go ahead to rent out his first place and buy a new one near his new job okayed. However, your situation is a bit different from what I can make out, you were buying the place with your friend which complicates matters a lot.

Chuffnuts

2 mates have expressed an interest in moving in and paying rent, an its a 3 bed. So could I get a consent to let, then let the house out to the 2 guys and my friend could live there on the quiet??? Would that work?!

atlantis187

They are both standard mortgages A&L dont know that we rent the property out. The mortgage on this is very low though about £25k outstanding.

Toughluck

Quite right hethmar, the OP situation is miles apart. He has a liability elsewhere with someone else and he is trying to defect from this liability I think his lender will not let him defect, therefore he will not get another mortgage.

hethmar

I think chuff, that the lender would want to see the person on your joint mortgage was also moving with you - that is, that he was also applying for the mortgage on the new place. (but Im no expert )

Andy_Davies

I've got two residential mortgages on two different properties - one a sole mortgage and the other a joint one with my wife...

It's a bit complex but basically my ex-wife lives in one (house can't be sold until our daughter is 21 and it's in my name only with 60% of the house in trust for my ex) and I live in the other with my wife and son.

Even a year ago getting the second mortgage was a bit troublesome - eventually we went back to the existing lender (Woolwich) and after a few troubles things were sorted.

One mortgage in on BoE + 0.19, other is fixed at 5.99 but changes to BoE + 0.6 in nine months