Can you have 2 mortgages?

Barny1979

Currently have a mortgage on a house and would if possible like to keep the property and rent it out and buy elsewehere, as I currently work away from home. Is it possible to have 2 residential mortgages? My current house has a small amount of equity in it, but is unfortunately in the wrong location for me.

GlynD

If you can get a "buy to let" mortage on your own property or permission from your current mortgage provider - then yes. You need to discuss it with your mortgage provider though.

Barny1979

I don't think I have enough equity for a buy to let unfortunately, as the ones I've looked at are around 70% LTV.

GlynD

Barny1979 wrote: »

I don't think I have enough equity for a buy to let unfortunately, as the ones I've looked at are around 70% LTV.

You've got to talk to your current provider though. They might accomodate you under your existing contract but they need to give their permission. They're not duty bound to give it either but if they do and you've got the income to support it theny will provide you with a second mortgage.

kingstreet

You need to ask your current lender for consent to let.

Once you do that you can start to look for a tenant.

Then you need to find a lender who will give you a new residential mortgage on the property you want to buy. You'll need at least 10% deposit and need a lender who will ignore the other mortgage in the background. Unless you've got a big enough income that it could be treated like a loan and the annual equivalent taken off your income before applying the multipliers.

Might be worth a chat to a whole of market or independent broker.