possible to get second mortgage? not BTL

tony_james

Hi

Does anyone know if I should be able to take out a second mortgage for a property which I don't intend to let? and if so any tips on lenders?

To be more specific, my situation is
I joint own (50/50) a flat with a friend, propery value ~£340000, total mortgage outstanding ~£180000, still need to live in this flat several days/week for work
my earnings are £50,000 pa

I would like to buy another propery joint with my partner who has cash saved (she is on a short term contract so probably can't get mortgage in her own right)

I think in theory I would normally be allowed to borrow ~ 3.5 times my salary? (so 50000x3.5= £175000) and since I currently only owe £90,000 can "afford" another £85,000. I can probably find ~£15000 in cash myself, so if my partner matches this with £100,000 in cash we might be looking at purchasing something for about £200000 with in total <50% LTV

Is this something that should be possible? if so, any tips on how to make it happen (the first few companies I've tried calling either don't do second mortgages at all, or only do it if one if BTL)

Thrugelmir

tony_james wrote: »

I think in theory I would normally be allowed to borrow ~ 3.5 times my salary? (so 50000x3.5= £175000) and since I currently only owe £90,000 can "afford" another £85,000.

You are severally and jointly liable for £180k of mortgage debt. Not £90k.

tony_james

OK, thanks... that seems clear - I guess that means I can't do that? I assume there is no way to arrange to split the liability? If not I suppose I could remortgage the place I currently have and remove the equity to pay cash for the second property? any issues or tips on that approach?

herbiesjp

The only way to split, is for one person to become liable for the mortgage on thier own. The other person would come off the mortgage.

Conrad

Yes you can get a second mortgage no problem, as long as your credit score is decent and the application is 'framed' correctly. I'm not sure I want to say which lender here as it could be construed as advice.

nomoneytoday

I reckon it's possible, but won't be at the lowest rates around, due to the higher risks..

Conrad

nomoneytoday wrote: »

I reckon it's possible, but won't be at the lowest rates around, due to the higher risks..

That's not right. The rates available are not affected.

Typhoon2000

Is one obliged to let out a property if its bought on buy to let? As long as the mortgage was being paid I would have though the lender would be happy with that.

Conrad

Typhoon2000 wrote: »

Is one obliged to let out a property if its bought on buy to let? As long as the mortgage was being paid I would have though the lender would be happy with that.

The usual reason given for people prefering a second resi mortgage as opposed to a B2L mortgage is that only 15% deposit is required on the former whereas the latter is 75%.

I've had many clients do this down the years where they intend to occupy the new one.

tony_james

Conrad wrote: »

The usual reason given for people prefering a second resi mortgage as opposed to a B2L mortgage is that only 15% deposit is required on the former whereas the latter is 75%.

I've had many clients do this down the years where they intend to occupy the new one.

That sounds like a definite possiblity - so are we saying that we should be able to get a buy-to-let mortgage (presumably assessed on the expected rentable value of the property) but then actually just live in the propery oursleves? if so is it really the case that you need a 75% deposit for a buy-to-let mortgage?

Thrugelmir

Conrad probably meant to type 25%.