can i have 2 mortgages on 2 properties

baron777red

we have a property that is mortgaged at the moment with the coventry BS, and want to know if we can buy another house, take out another mortgage, and rent our existing house out.

we have tried to sell the house, and have just found out that the sale has fell through for the 4th time (various reasons), the stress is just too much, so i was wondering if renting it out would be a better option. we are only paying £350 a month mortgage and could probably rent it out for 425pcm

it will mean having 2 mortgages on the go, is this allowed?

i know about BTL mortgages but we cant afford the 20-25% deposit required for these.

our current mortgage has 92k outstanding with a property value of 100k, and we really need to move from our 2 bed house because my wife is pregnant with out 2nd child and we need the exra bedroom

thanks

VIGILANT22

If not changing to BTL you would require consent from Coventry to let...with such a high ltv they may possibly say no........

you can have 20 mortgages on 20 houses if you fit the criteria

goRt

You find it stressful at the moment, what if you have 2 (near 100%) mortgages and no T to pay the one - do you have sufficient income to cover both mortgages without rental income

lolarentt

The margin you're talking about isn't enough to cover incidentals like repairs, agents fees if you're using one, insurance etc PLUS when interest rates do finally move up you'll be in a worse situation. Also you'll be in breach o your existing mortgage conditions if you let without Coventry's approval

namzij

As long as you have consent to let from your mortgage provider it shouldnt be a problem ( as mentioned). Some lenders usually dont have a problem giving this, some do and may charge you an admin fee of about £100 to enforce this. You can market your property to the tenant buyers out there and charge a premuim rent, which will more than cover repairs, maintenance costs, etc. If you need help setting this up let me know.

I dont know how successful you will be though getting another mortgage on another property without a huge deposit, BTL or residential. The lending criteria is very strict now. Your best option maybe to rent out another property to move into and sit tight whlist the mortgage is being paid off and the market to pick up, usually 6 yrs.

baron777red

thanks namzij, we had considered moving into rented accom, but the area we are buying the house in(or were buying it in, we will probably lose it now) will cost 550-600 a month, and if interest rates go up our mortgage goes up, but it may be a way out instead of selling