Is it still possible to get two residential mortgages?

daxu

Hi,
My wife and I currently have a mortgage with ING Direct (balance around 30k).

We are thinking of buying a flat within a good catchment area, but Is it still possible to get two residential mortgages? I called ING direct, they say we can only have one residential mortgage, so we either go buy to let for our existing house, or pay it off.

The problem is that the flat we are interested in needs a deposit around 30k and our saving is around 30k as well. So if we pay off existing mortgage, we won't have the deposit to buy the flat.

Does this mean we have to go buy to let? Lots of people say it is quite hard to get a buy to let mortgage and the rate is rubbish as well.
Can anyone give some ideas?

Many Thanks

Jerry

unite79

Yes it is possible to have 2 residential mortgages - However what are you planing to do with your current property.

payless

Can anyone give some ideas?

Send your children to the local school ?

Sell up and move properly to your preferred area ? ( you post implies just using the new address- if not you need to get consent from ING for it not be your main residence)

--
Some LAs now have teams of investigators, and will withdraw places if deemed the information provided was false.

There could be lots of tax implications
--

daxu

Hi,
What my wife and I think is that we will move to the flat for at least 1 or 2 years before my daughter is 11 (currently reaching 5 years old) and make that our main house for some time.

We don't really want to sell our existing house (not just yet), as it is in a very good residental area as well and I do ever dare to talk or joke with the teenagers wondering around.

So, here is our plan:

We want to buy the flat and let it out for a couple of years and move in there when my daugher is 8 or 9 years old. This should make us qualify the good school.
When we move into the flat, we will let out our existing house and at that time we should have paid off the mortgage for that one.
After some years, we will just move back to the old house and let out the flat and (starts to save for a house close to the university she wants to go maybe..).
Ideally we would like to get two residental mortgages, if possible.
We haven't really tink about tax implications etc, as this is really something new to us.
Many Thanks

Conrad

You can have a second resi mortgage if it stacks up. The sorts of questions that might come up are - why is the client supposedly moving to a cheaper property - has the existing lender granted rental consent and so on.

A broker I know just had such a case declined by Abbey after 6 weeks, as the underwriters did not believe the applicant was going to reside immediately as the new property was smaller than the existing.

Why not do a buy to let with a 30% deposit instead?

daxu

Hi Conrad,

The finance advisor from the estate agent told me on the phone that a buy to let mortgage has a rate like 5% or even 7%.

The rate for a residential mortgage is much better, isn't it? that is why we are interested in residential.
Many Thanks

payless

The rate for a residential mortgage is much better, isn't it? that is why we are interested in residential.

so you would need to state you will live there

which you won't

We want to buy the flat and let it out for a couple of years

jason_taylor_2

daxu wrote: »

Hi,
What my wife and I think is that we will move to the flat for at least 1 or 2 years before my daughter is 11 (currently reaching 5 years old) and make that our main house for some time.

We don't really want to sell our existing house (not just yet), as it is in a very good residental area as well and I do ever dare to talk or joke with the teenagers wondering around.

So, here is our plan:

We want to buy the flat and let it out for a couple of years and move in there when my daugher is 8 or 9 years old. This should make us qualify the good school.
When we move into the flat, we will let out our existing house and at that time we should have paid off the mortgage for that one.
After some years, we will just move back to the old house and let out the flat and (starts to save for a house close to the university she wants to go maybe..).
Ideally we would like to get two residental mortgages, if possible.
We haven't really tink about tax implications etc, as this is really something new to us.
Many Thanks

Hi.

Had you thought of a Let to Buy mortgage on your flat...then move into it. Rent out you main house but dont tell the lender. If you dont tell the lender they shouldnt find out. just remember that this would be breach of your mortgage terms and conditions and the provider could recall the mortgage if they found out.

beecher

jason_taylor wrote: »

Hi.

Had you thought of a Let to Buy mortgage on your flat...then move into it. Rent out you main house but dont tell the lender. If you dont tell the lender they shouldnt find out. just remember that this would be breach of your mortgage terms and conditions and the provider could recall the mortgage if they found out.

And what happens if there's a fire and your insurance is invalid? Bad advice in my opinion.

OP, if you're buying a BtL property then you need at BtL mortgage - the fact that you're unhappy at paying a higher rate than you would on a residential mortgage is not relevant.

bingibongi

jason_taylor wrote: »

Hi.

Had you thought of a Let to Buy mortgage on your flat...then move into it. Rent out you main house but dont tell the lender. If you dont tell the lender they shouldnt find out. just remember that this would be breach of your mortgage terms and conditions and the provider could recall the mortgage if they found out.

What an awful piece of advice.

If you cant afford it dont do it - it really is that simple

MissMoneypenny

jason_taylor wrote: »

Hi.

Had you thought of a Let to Buy mortgage on your flat...then move into it. Rent out you main house but dont tell the lender. If you dont tell the lender they shouldnt find out. just remember that this would be breach of your mortgage terms and conditions and the provider could recall the mortgage if they found out.

PLUS

1. The insurance probably wouldn't be valid.

2. If the tenant suffered financial loss due to repossession, they can sue the landlord. I know everyone plans to pay their mortgage, but life gets in the way.