2nd residential mortgage

damienfwalsh

Any help would be greatly appreciated.

I currently have a residential mortgage for my wife and I, but I wish to buy my mothers house. She is going to continue living there and paying the mortgage, but it will be considerable lower payments in my name as her current lender is ripping her off due to her age.

Is there any problem with having two residential mortgages, or do I need to take out a buy to let mortgage?

I currently have a broker who will apply for a second residential mortgage for me, but i'm worried in case this is fraudulent.

Thanks...

inmypocketnottheirs

I would say that to do this properly you would need a buy to let mortgage. You would then need to have your mother sign an Assured Shorthold Tenancy. However, whether lenders in the current climate are prepared to allow you to let to a member of family I am not sure. Your best bet would be to contact a whole of market broker, of which there are many here.

CloudCuckooLand

You can have as many residential mortgages as your income can support.

If income runs out, then you can go the BTL route, though the deposits and fees are larger. And fewer lenders permit BTL to family.

Your Mother should still be named on the house, and therefore will need to be on a joint mortgage, to give her security of tenure.

And the price you agree should not be too heavily discounted to ensure no later accusation of deprivation of assets, by the council.

herbiesjp

Sounds like your broker is getting you a good deal - assuming your income can support both mortgages.

getmore4less

damienfwalsh wrote: »

her current lender is ripping her off due to her age.

Not heard of higher rates because of age what rate are they charging?

.

damienfwalsh

getmore4less wrote: »

Not heard of higher rates because of age what rate are they charging?

.

Think she's on 6.49%. She can't get changed to a different one due to her age. I want to remortgage for slightly more than she owes, pay off some of her other debts and my brothers and I are going to pay her mortgage, giving her all of her income to live on, which will be just about enough to keep her comfortable.

Thanks for the replies, much appreciated. I thought any mortgage after your first had to be BTL at a higher rate.