Mortgage for second property

Richie(UK)

Hi all,

My wife and I live in a property worth circa £250k. Secured on that property is a mortgage that currently stands at around £70k. We are considering the purchase, jointly with brother-in-law and his wife, of a second property (a holiday cottage for use at the weekends).

My query concerns arranging a mortgage for this property. From what I can gather it is not possible to have a second residential mortage. Although the property may be let at times I doubt it will be regular enough to warrant a BTL mortgage. That leaves a second mortgage secured against our main residence. Is a second lender likely to accept a charge against the property when one is already in place? Or are we basically tied to the existing mortage provider (they will not, I suspect, extend the current mortage as it is on very favourable terms)?

herbiesjp

If you secure the extra funds on your current property, you will not need a mortgage on the cottage. Your current lender may give you the extra funds needed, but the extra amount would be on a deal currently available, not on the same terms as your current £70k.

Thrugelmir

If you remortgage the purpose of the loan isn't particularly an issue. Though finding a lender willing to advance the sum you require at a competitive rate may be more of a challenge. There is plenty of equity to secure the debt.