Is it possible to have 2 residential mortgages?

holly_hobby

Ok ... to answer your question ...

Yes you may have 2 or more residential mortgages, in essence as long as you meet the lenders status checks & your income is sufficient to support all borrowings its perfectly feasiable, and certainly not illegal !

You may consider a let to buy mortgage for property no 2 (your new main residence). (whereby the lender elects to disregard your existing mge commitment - some ask for proof the property is being rented, others don't bother - as was the case I had when I rented my original residence out, and pchd a 2nd to live in).

You further need to consider if your flat doesn't sell in the short term - can you afford both mortgages ?
Have you considered the risks of an unoccupied property ?
Are you aware that your standard buildings ins is invalidated for periods of unoccupany in excess of 30 days? (Which is a breach of your mge contract)

Of course the solution to that would be to let it out, but that brings with it its own problems and complications.

Hope this helps

Holly

holly_hobby

Visiondvd wrote: »

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.

Well I am sure - the only possible legal issue would be with regards to nomination of a main residence to HMRC for CGT purposes.

Who ever told you it was illegal to have 2 properties or mortgages, may have do so based on other reasons connected with your application (and not disclosed in your post).

Holly

stephenbalmer

Hi All,

Just a little further contribution here. It is NOT illegal in any way to have multiple residential mortgages. I have a primary house and a second house for business during the week - both residential mortgages, both recorded in my name as the resident.

Only issue is with declaring my second, business home for CGT.

Regards to all,

Steve

Irvhud

So I guess we're kind of screwed if they want to see a copy of the tenecy agreement before they give consent to let.

Thrugelmir

Irvhud wrote: »

So I guess we're kind of screwed if they want to see a copy of the tenecy agreement before they give consent to let.

You need to face up to the fact that the property you have is in negative equity. Owning another property may well just add to your financial woes.
So may be better to tackle the debt head on rather than trying to find an easy way out of the situation.

GavB79

How would it work if somebody wanted to acquire a second property as a renovation project to sell on? Presumably they don't get a buy-to-let, as they have no intention of letting it. But they also don't especially want another residential mortgage for as little as three months. So how does it work? Outright cash purchase? Business loan?

Irvhud

Thrugelmir wrote: »

You need to face up to the fact that the property you have is in negative equity. Owning another property may well just add to your financial woes.
So may be better to tackle the debt head on rather than trying to find an easy way out of the situation.

True, although I do have the money to pay of the negative equity, its more a time thing as we need to move pretty sharp so we dont want to wait for it to sell

jungle_jane

GavB79 wrote: »

How would it work if somebody wanted to acquire a second property as a renovation project to sell on? Presumably they don't get a buy-to-let, as they have no intention of letting it. But they also don't especially want another residential mortgage for as little as three months. So how does it work? Outright cash purchase? Business loan?

i could be wrong about this so interested to hear other views...

as far as i know, you get hammered with tax. you are classed as a property developer and taxed are huge...if you live in a place and its your primary residence then you don't pay property developer tax and you don't pay capital gains

i can't think of anything worse than taking on a do-er upper and then selling it on...what do you guys think?

Thrugelmir

Irvhud wrote: »

True, although I do have the money to pay of the negative equity, its more a time thing as we need to move pretty sharp so we dont want to wait for it to sell

There's an old saying "Less haste more speed".

Renting out the property doesn't help you either. As at the point you come to sell it. The property will need to be vacant. (Tenants insitu don't have to allow access for viewings). So there'll be a cost of funding the mortgage with while receiving no income.

Why the rush?

GavB79

jungle_jane wrote: »

i could be wrong about this so interested to hear other views...

as far as i know, you get hammered with tax. you are classed as a property developer and taxed are huge...if you live in a place and its your primary residence then you don't pay property developer tax and you don't pay capital gains

i can't think of anything worse than taking on a do-er upper and then selling it on...what do you guys think?

That's for the proceeds, but where does the money come from to buy it in the first place?