Can I get 2nd mortgage

jimba1

Hi,
I've recently moved out of my mortgaged property to move in with my partner.
As I'm now renting my property to a tenant - my mortgage has been changed to a buy to let by permission of mortgage lender and payment of a standard fee.
My partner's property is mortgaged but we are planning to put this on the market to sell in the next few months hopefully when the market picks up and buy a house together.

My question is around getting a second mortgage with my partner if I already have a buy to let mortgage. Will lenders see this this as seperate from the amount I can borrow etc.

Also, seperate question, what is the lowest deposit you can put down these days with mortgages. Are there still 90% mortgages available.

Thanks in advance.

Jim

_Andy_

Hi Jim

The BTL shouldn't pose a problem assuming rental adequately covers mortgage payment etc.
90% LTV available assuming good credit etc, expect higher rates.
Cheers

jimba1

Yes, I can cover the mortgage payments with BTL and a little extra which is used for maintenance/ gas boiler cover plans etc.

Out of interest, are people taking out unsecured loans to gain a higher deposit or do mortgage lenders take this less favourable.
Both my partner and I earn good money but can only get about 10% deposit at the max.

herbiesjp

jimba1 wrote: »

Yes, I can cover the mortgage payments with BTL and a little extra which is used for maintenance/ gas boiler cover plans etc.

Out of interest, are people taking out unsecured loans to gain a higher deposit or do mortgage lenders take this less favourable.
Both my partner and I earn good money but can only get about 10% deposit at the max.

Rental coverage of the mortgage has to be at a certain level i.e. 120% or 130%. Different lenders have different cover needed.

Taking out an unsecured loan is not a way of raising a deposit.

If you have any other unsecured loans, it will reduce the maximum amount of mortgage you could potentially get.

VIGILANT22

As you have posted above you have you already have your BTL mortgage in place, which must have met lenders requirements, therefore this should not be a consideration when applying for a residential mortage.

However what you should consider is, if this goes untenanted and you have a rental void, you will still be required to meet mortgage payments from your own income.... therefore be very careful not to over commit yourself.....

Also take heed as to not using a personal loan as a deposit....

herbiesjp

VIGILANT22 wrote: »

As you have posted above you have you already have your BTL mortgage in place, which must have met lenders requirements, therefore this should not be a consideration when applying for a residential mortage.
.

I'm afraid it is a consideration

The lender for the new property will want to know the rental covers the mortgage, otherwise it will be treated like a "normal" commitment, and incomes reduced to reflect that fact before applying income multiples

VIGILANT22

The mortgage has already being changed to a buy to let...therefore it would appear very strange if the lender had not ensured the OP met all requirements before they changed this over!

herbiesjp

VIGILANT22 wrote: »

The mortgage has already being changed to a buy to let...therefore it would appear very strange if the lender had not ensured the OP met all requirements before they changed this over!

I am talking about the new lender for the new purchase :wall:

Cannon_Fodder

If it was a 'standard fee', was it really a BTL he changed to, or just 'consent to let' that has been agreed...?

herbiesjp

Either would be fine.

Only the OP would have the answer though.

jimba1

Thanks for the advice guys.
It may possibly be 'consent to let' that I received as I had to pay Abbey National nearly £300 to do this.
I wonder what will happen when my fixed rate runs out in 18 months time. Will they automatically raise the interest and start charging buy to let rates.