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Second property - type of mortgage
Richie(UK)
Posts: 284 Forumite
Hi all,
We are considering the purchase of a second property (jointly with another couple). The primary motivation for the purchase is to have a holiday home (looking to purchase in a Cornish seaside location) that we can use throughout the year. We are considering whether we might also let the property out when we are not using it to help towards the interest costs.
Where does this leave us with regards to mortgage applications?
I know if we were buying specifically for the purpose of letting out then we would need to apply for a BTL mortgage and that the projected rental stream would, typically it seems, need to be around 125% of the interest payable. What is the position where the property isn't acquired primarily for BTL purposes but some letting may take place?
Thanks.
We are considering the purchase of a second property (jointly with another couple). The primary motivation for the purchase is to have a holiday home (looking to purchase in a Cornish seaside location) that we can use throughout the year. We are considering whether we might also let the property out when we are not using it to help towards the interest costs.
Where does this leave us with regards to mortgage applications?
I know if we were buying specifically for the purpose of letting out then we would need to apply for a BTL mortgage and that the projected rental stream would, typically it seems, need to be around 125% of the interest payable. What is the position where the property isn't acquired primarily for BTL purposes but some letting may take place?
Thanks.
«««¤ Richie ¤»»»
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Monday morning bump for the weekday posters.
«««¤ Richie ¤»»»0
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