Is it possible to have 2 residential mortgages?

Irvhud

Hi, All comments welcome;)

I own a flat in my own name, probably a few k negative equity.

My partner and myself want to buy a place together. We have saved the deposit and are viewing places.

Is it possible to have a second mortgage without selling the flat or converting to buy to let? What we plan to do is buy somewhere new, move in and then sell my flat.

We had a AIP from Santander for a mortgage, they were fully aware of the aforemention plan and it was never questioned.

The AIP from Santander has now expired so we have been speaking to an IFA with the hope of finding a better deal.

The IFA has told us that it is not possible to do what we planned and the only option is to either sell the flat or get consent to let and rent it out.

Anyone had anything similar?

Visiondvd

No, not legally.

Irvhud

Visiondvd wrote: »

No, not legally.

Its illegal to have two mortgages???:(

What if we can afford it?

opinions4u

Visiondvd wrote: »

No, not legally.

In what way would it be illegal?

Most of us would fall at the affordability hurdle. But I'm not aware of any legislation prohibiting it.

Lenders are cautious at the moment - so it may not be easy to achieve.

jungle_jane

i have 2 residential mortgages...legally. the first i obtained consent to let on and the second place i live in. this is a short term measure (ie a year or so) while i decide whether to sell the first place or convert to buy to let...

Visiondvd

As far as I am ware, no lender under the CML can lend twice to residential legally, although it is not the law of the land.
Now the way to do it is you take a residential on one she takes a residential on the other.
problem is meeting criteria.

opinions4u

Visiondvd wrote: »

As far as I am ware, no lender under the CML can lend twice to residential legally, although it is not the law of the land.
Now the way to do it is you take a residential on one she takes a residential on the other.
problem is meeting criteria.

I think you're making it up as you go along.

Sorry.

Quite happy to retract if you can identify the laws / FSA regulation / CML membership obligations that suggest I'm wrong.

Irvhud

jungle_jane wrote: »

i have 2 residential mortgages...legally. the first i obtained consent to let on and the second place i live in. this is a short term measure (ie a year or so) while i decide whether to sell the first place or convert to buy to let...

Are you actually letting it though? And if not did you tell the lender that you were not intending to do so?

How easy was it to get consent, I've asked my lendor (Scottish Widows) and it seems like they want a copy of the tenency agreement i.e I dont think I can just tell them I am and going to let it and then not do so plus it will cost me £450 a year?

jungle_jane

so...my OH has his own mortgage as well as our new joint house. both with santander. his house does have consent to let too (£295 from santander) and they didn't ask to see leases. there is no-one living in it as he is rennovating it. the point is that they didn't ask though so i think the only drama is that you have to be careful with your house insurance....if the place is unoccupied for longer than 30 days your insurance can be invalid. its not a problem for us as OH is at the house all day long rennovating.

in my case, i moved miles away to live with OH in our new house...and while i decide what to do with my property i have consent to let and i have let the place out on short term. while i was doing this, i asked if they wanted to see the lease first but they explained that you need to get the consent first before letting the place out. I got the vibe that most lenders wanted you to get permission first. my consent to let cost £20 and only lasts 2 years. OH's is indefinite.

so in both cases in theory we could have got consent but never actually let the places out...

Visiondvd

I aint making this up,
thats what i was told when I tried to have two.
So dont accuse me of something you or me aint entirley sure about.

opinions4u wrote: »

I think you're making it up as you go along.

Sorry.

Quite happy to retract if you can identify the laws / FSA regulation / CML membership obligations that suggest I'm wrong.

jungle_jane

Irvhud wrote: »

plus it will cost me £450 a year?

different lenders have different costs and criteria. you are quite unlucky in their £450 a year charge...this is really steep. i guess they would prefer to push you onto a higher cost buy-to-let but they are within their rights to do so...

my IFA would only proceed with my new mortgage once i had consent to let as he said you are not allowed 2 residential mortgages otherwise. he said that some lenders check and want to see the permission to let before they give you a mortgage and some don't (although they can come back and ask for it up to 2 years later) - in my case the Santander didn't want to see the actual letters but my IFA still kept them on file...