What Mortgage for 2nd Home?

ler01kjh

Hi,
Looking to buy a property closer to work to avoid the commute - stay there during the week and back to current property for the weekend.

What mortgage could I get on the second property? It isn't a buy to let mortgage as I will be living there, but I'm not a first time buyer either.

I called First Direct, and they said I couldn't buy a second property through them. Is this common? When I do a search for the best mortgage, do I assume a 'first time buyer' status or something else?

Thanks.

Comyface

People have been doing this for years so some lenders must be able to do it, I reckon First Direct is in the minority (not an expert though, sorry!).

No, as far as I am aware, FTB status is very literal. If it's the first time you have bought a property then you're a first time buyer. If not, then you're not.

It'll probably be a 'second home loan' that it'll be called and I expect you'll need a larger deposit (25%) because of this. You won't be in a chain, though, so you'll be an attractive buyer to vendors.

ler01kjh

theartfullodger wrote: »

a)

http://www.moneysavingexpert.com/mortgages/mortgage-guide
b) Have you much equity in your current home - enough to re-mortgage & use the £££s to buy the 2nd one???
c) Tried "Google". It's quite a powerful tool becoming popular with people, I'm told. "Mortgage 2nd Home" got me 15million+ hits, at least some of which should be helpful
d) here's a narrower search done 4 U..

http://lmgtfy.com/?q=.uk+mortgage+2nd+home

Cheers!!
Artful

Thanks. Indeed I have read some of the webpages from google. It doesn't tell me however whether I would be eligible to 'normal' mortgages like I would with my first home. I have also read MSE article, although if I have missed something relevant do point it out as I did not see anything hence my post.
My question remains around eligibility for types of mortgages.
Here http://www.moneysupermarket.com/mortgages/ there are a number of choices:
1. Remortgage of current home (no)
2. Moving house (yes, but not selling the old one with a mortgage)
3. First time buyer (no)
4. Buy to let (no)
5. Right to buy (no)
6. Self build (no)
7. Equity release (no)

So despite me too being an advocate of google, it doesn't quite help. No point me looking at mortgage deals under option 2, if they aren't relevant.
Was hoping someone else might have bought a second home and could advise?

ler01kjh

theartfullodger wrote: »

Think you mean "someone who has bought a 2nd home for working from very recently" as lending practice has been changing somewhat over the past 12months...

What did the various mortgage brokers you asked say?
http://forums.moneysavingexpert.com/showthread.html?t=183138

And can you give us a hint as to your financial situation ?? (e.g. House worth £234k, mortgage £120k, earn £54k monthly salary (as opposed to e.g. self employed), don't have a partner that works, credit rating believed to be good... so someone can form a view as to borrowing yet more money is feasible or not...
Cheers!
Good luck & best wishes to all, including those who don't agree with me...
Lodger

How very odd. Can I suggest that unless you have something helpful to say, you don't say anything? My experience of using this site for many years is that people aim to help, not come out with cocky sarcastic and pointless content. I have not gone into my financial situation as I am not asking for you to approve a mortgage for me. Neither am I asking whether I should borrow more money or not.
The question I asked about the category of mortgage a borrower in my situation might fall, is a clear one in my mind. Yet I recognise not everyone benefits from discerning brain cells.

socrates

ler01kjh wrote: »

How very odd. Can I suggest that unless you have something helpful to say, you don't say anything? My experience of using this site for many years is that people aim to help, not come out with cocky sarcastic and pointless content. I have not gone into my financial situation as I am not asking for you to approve a mortgage for me. Neither am I asking whether I should borrow more money or not.
The question I asked about the category of mortgage a borrower in my situation might fall, is a clear one in my mind. Yet I recognise not everyone benefits from discerning brain cells.

In order to answer any question regarding mortgages and the type you will need - there are a few questions that need to be answered:

Your salary (joint salaries)

Your current mortgage and LTV

The amount you are looking to spend on your new property

How much deposit you have

These are the minimum requirements to get a 'sensible' answer - nothing to do with brain cells or anything else.

Simple questions with simple answers.

dunstonh

Typically, it would be considered as an investment property and as long as you have a sufficient deposit to put down (which will typically be more than a single residential mortgage) and your income shows you can afford the mortgages then it shouldnt be an issue. Any local mortgage adviser should be able to help you.

supersunshine

ler01kjh wrote: »

How very odd. Can I suggest that unless you have something helpful to say, you don't say anything? My experience of using this site for many years is that people aim to help, not come out with cocky sarcastic and pointless content. I have not gone into my financial situation as I am not asking for you to approve a mortgage for me. Neither am I asking whether I should borrow more money or not.
The question I asked about the category of mortgage a borrower in my situation might fall, is a clear one in my mind. Yet I recognise not everyone benefits from discerning brain cells.

Here here - well said! :T

supersunshine

This site looked interesting as it actually has a page on 2nd home mortgages so might be worth a read:

http://www.fancyamortgage.co.uk/2ndHomeMortgages/Introduction.asp

Conrad

There are a couple of lenders that have been able to consider this for clients over the years. Fairly complex applications these - you will need to demonstrate affordability for both the new and existing mortgage.

Internet searches as ever for complex cases will not likely yield meanigful results. For example some lenders have this facility but it is designed for those that have an 'intention' to sell the current home, but no lending rule as such. Find a decent broker perhaps.

Buildings insurance - take good care as many policies are not designed to cover weekday homes.

Good luck.

cash-magnet

On a slight twist to this thread... say you own your current property with no charge or debt against it, then it is effectively just an asset you own, like a car, a painting, a bike etc.
Can you claim FTB status if you try and get a mortgage to buy a house?

jamesd

cash-magnet wrote: »

say you own your current property ...
Can you claim FTB status

You own your curent property, so no. They are for those who have never owned a property.