Re-mortgage to get a mortgage problem

Maley

Hi All,


Basically I'm trying to get myself a two-bedroom flat at around £140k that I can live in and share with a flatmate.

I have a few problems that could affect me,


As I have only started working I am struggling to raise a deposit. I have two properties in my name that have been paid off in full and will value for around 70k each.
One of these properties is being let out and the other is being used by a family member. The two flats were transferred into my name a couple of years ago.


The second issue, is that I have recently taken over a mortgage from another family member, about 3 months ago.
This was with my main bank and is classed as a second home. Basically family use it alot and it isn't getting rented out. However I am getting subsidized for the mortgage.

What I am wondering is,

What is the best road to go down with the re-mortgage? If I say that a family member is living in one of the properties then could I get a re-mortgage instead of a buy-to-let re-mortgage?

Secondly, my main bank told me that normally you can only have two homes of residency.
Could I go into another bank, ask for a re-mortgage in the property that is not being rented, and then ask for a mortgage to buy the 2-bedroom flat at 140k?

Thirdly, can I keep quiet to the other bank/solicitor about the mortgage that I already have?
So in there eyes I will only have two personal homes, instead of three?

I went into my main bank and they said that I couldn't do anything for about 3months just because I had recently taken out a new mortgage.

Any help would be greatly appreciated, I'm sorry if this didn't make too much sense.


Thanking you,


Michael

Yorkie1

Don't know about Q1 & 2 but can tell you that re. Q3, 'keeping quiet' when asked a direct question will generally involve a misstatement of fact about the true position and thus potential mortgage fraud...

geoffky

this will be fraud?

maninthestreet

So you own 2 properties you don't live in, one rented out, the other used by a 'family member' with no mortgages on either. You have a 3rd property that is mortgaged, you don't live there, it's not rented out but the 'family use it a lot', and some person or persons is/are subsidising your mortgage payments, and now you want to get another mortgage to buy a 4th property, but don't want the potential lender to know about your 3rd property and it's mortgage, and you don't have enough money for a deposit??

getmore4less

Are you declaring all this income to HMRC?

You need to raise some capital for a deposit.

Sell one of the properties

Get a mortgage on the rented one.

catieeb06

Depends, some lenders class the property being let to family as being a dependant's property therefore will allow you to go down the residential route. Other's will still insit it's BTL.

With regards to Q3, don't even go there, doing such activity as other people have said can constitute Mortgage fraud.