Mortgage for a second home

Starsky_4

Hi Everyone - I've been fortunate enough to inherit some money, which means that with the help of a mortgage I should be able to afford a holiday home in the UK. I currently have about 14 years left on my current house, at the mo on a fixed rate from Portman.

My questions is (or in fact are):

1. If were to simply increase the current mortgage at the same rate (assuming its possible) do I have to tell them what its for ?

2. If I were to go somewhere else would I get charged a "Buy to Let" rate, even though it will be rented out for only a few weeks per year or will they give me a normal rate. Do I have to tell them I already have a house ? (I would be within the 3 x salary for new and outstanding amounts)

3. Is there any other way of doing this I've not thought of ?

All advice appreciated as ususual...

Ian_W

1. Yes, they will want to know the purpose of any additional borrowing BUT buying a holiday AFIAK will be perfectly acceptable to all lenders. At least I've never heard of anyone being refused because that was the purpose.
2. BTL mortgages require you to let on "assured shorthold tenacies" - you won't be so don't bother, they're not for holiday lets.
3. You could possibly get a commercial mortgage but if you have sufficient equity in your home, why bother especially as it's more expensive. You could also rob a bank but then you might have to wait a while to enjoy the holiday aspect!!

Option 1 is your best bet - what have you got against telling your lender what it's for?

regularsaver1

i have done tons of additional lending for customers (although not portman) for people buying holiday homes in the UK and abroad. reason keyed was capital raising

Starsky_4

Hi - thanks for the replies, I have nothing against telling them, just wondered if it was necessary. Good to know most lenders are OK with this.

BTW - what does AFIAK stand for in the first reply ?

Thanks again.

Ian_W

As Far As I Know - except I typed it wrong !! :rolleyes:

so, its As Far I As Know!!