Two mortgages

Neesieb01

Does anyone know if it's possible to have two mortgages? I.e. are lenders open to this idea/willing to lend? My situation is this. I own a flat (mortgage with Santander) which I am currently renting out. I have a consent to let from Santander, although they haven't switched me to a buy to let mortgage product. I am now planning on purchasing another property together with my boyfriend, which we will both live in. We're putting down a 15% deposit. Does anyone know if Santander are likely to consider giving us a mortgage together on the second property? Is it possible to have two mortgages on two different properties at the same time?

All info/help/advice appreciated. Thanks!

Wh05apk

Subject to income etc should be no problem.

Thrugelmir

An opportune moment for Santander to request a change onto a BTL mortgage. As the reason you requested CTL would no longer seem relevant.

holly_hobby

Santander may restrict LTV on the let property to 75%, if you secure a further residential mortgage with them.

You would certainly qualify for a "let to buy" mortgage with another provider - whereby your existing mortgage commitment is effectively ignored for calc purposes on your new residential mortgage.(the lender may require sight of the AST on the let property and confirmation that it is let with the existing lenders authority).

Remember for CGT purposses, you must nominate to HMRC within 2 yrs of vacation, which property is to be treated as your main residence (otherwise HMRC will make the decision) - any nomination is reversible upon any future change of circumstances.

Hope this helps

Holly

Wh05apk

Holly, they would not need a "let to buy" mortgage, a "let to buy" mortgage is normally done on the rented property to raise the deposit for the new one, the new property will go on a normal residential mortgage.

somethingcorporate

Some lenders will not entertain this. When we were applying to buy our second home after converting the first via consent to let the Bank of Ireland said they would not entertain a second mortgage regardless of income or affordability.

holly_hobby

Wh05apk wrote: »

Holly, they would not need a "let to buy" mortgage, a "let to buy" mortgage is normally done on the rented property to raise the deposit for the new one, the new property will go on a normal residential mortgage.

Sorry Wh05apk, but I'm fully familiar with mortgage products, and must correct your understanding of a "Let to Buy" mortgage. Which is NOT a mortgage to release equity on a property to be let - but rather the opposite in fact.


For clarity -

Let to buy - is where the individual is seeking a residential mortgage on a 2nd property which is to be their main residence. With the appropriate lender ignoring the existing mge commitment on the (to be) let property (which may be subject to verification), and instead assessing affordability solely on res mge applied for ( & exis regular commitments of course).

(NB - if a LTB mortgage is not sought - the lender will of course require the applicants income to satisfy all mortgage and regular commitments, and obviously restrict the amount available).

Various lenders have had various marketing names since introduction for this type of arrangment, i.e The Mortgage Business (TMB) marketed this format as their "Next Move" product.


Buy to let - does what it says on the tin - i.e - it is where the individual is seeking a mortgage on a propety to be let from outset - and effectively a semi commerical mortgage.

Consent to let - where the individual has originally effected a residential mortgage on a property as their main residence - whom later vacates the property, seeking the existing lenders to permit the intrim rental of the same.


Hope this helps clear and explain matters

Holly

Neesieb01

Hi all, thanks for the comments and advice. I feel a bit more informed now - thank you. I'm speaking to Santander next week, so hopefully I can sort it all out.

holly_hobby

Good luck ..

If Santander don't wish to increase their exposure in providing further borrowing, or restrict the amount available - a visit to a good whole of market mortgage adviser with your requirements, should present them no problems in sourcing a suitable alternative lender (subject to status of course) .

Hope this helps

Holly

Wh05apk

holly_hobby wrote: »

Sorry Wh05apk, but I'm fully familiar with mortgage products, and must correct your understanding of a "Let to Buy" mortgage. Which is NOT a mortgage to release equity on a property to be let - but rather the opposite in fact.


For clarity -

Let to buy - is where the individual is seeking a residential mortgage on a 2nd property which is to be their main residence. With the appropriate lender ignoring the existing mge commitment on the (to be) let property (which may be subject to verification), and instead assessing affordability solely on res mge applied for ( & exis regular commitments of course).

(NB - if a LTB mortgage is not sought - the lender will of course require the applicants income to satisfy all mortgage and regular commitments, and obviously restrict the amount available).

Various lenders have had various marketing names since introduction for this type of arrangment, i.e The Mortgage Business (TMB) marketed this format as their "Next Move" product.


Buy to let - does what it says on the tin - i.e - it is where the individual is seeking a mortgage on a propety to be let from outset - and effectively a semi commerical mortgage.

Consent to let - where the individual has originally effected a residential mortgage on a property as their main residence - whom later vacates the property, seeking the existing lenders to permit the intrim rental of the same.


Hope this helps clear and explain matters

Holly

Holly thank you for your patronising explanation, as someone who continually "bigs" yourself up spouting your advanced qualifications you really should know better.

"Let to buy" is a bit of a variable definition, effectively being a play on "buy to let" however generally it describes a mortgage as my definition, ie, to raise funds on a residential property which is to be let in order to raise funds for the deposit on a new mortgage.

You refer to TMW, from their pages:

"Let to Buy

First time landlords, classified as applicants who have not owned and let a buy to let property for the last six months, remortgaging their existing residential property as a buy to let must choose from the Let to Buy product range."


So TMW secure the Let to buy mortgage on the rental property.

FRom Platform :

"Let to Buy changes - 25 July 2011
In response to feedback from our customers we will now allow the remortgage of a residential property to a Buy to Let, provided the applicant is in the process of purchasing a new residential property.

In order for an offer to be issued on the Buy to Let mortgage we will need to receive evidence of the offer for the new residential mortgage. There will be no exceptions to this requirement."

So Again Platform secure against a rental property.


The OP simply needs a residential mortgage, most lenders accept the existing mortgage, and normally provided the mortgage commitment is met (and normally 25% surplus) will be ignored, otherwise it, or part of it will be ignored.

If you are adamant the OP requires a let to buy mortgage, you should advise them not to go to Abbey, as they do not do them!

Sorry for my rant, but it annoys me when misleading advice is given on here.

holly_hobby

W. I'd be offended by your post if it wasn't so funny.

But I would like to say that, I don't "BIG" myself up, continually or otherwise, as you so nicely put it , on my advanced status (unless its important to qualify advice with the fact that I am suitably qualified to provide the same, and not just someone having a guess or stab at what I guess or think to be accurate), and can only assume why my qualifying my comments (where reqd for OPs benefit) appear to be some sort of issue for you

I was involved in the industry when both BTL and LTB were first introduced - and was actively invovled in marketing them for various lenders.

So I am fully familiar with which is which, unfortunately it appears that although noted as an active mge advise mge, you clearly aren't familiar with the same.

TMW (a lender) - whom you have quoted in respect of LTB, do indeed have a marketing name termed, LTB, but their basis of this product, is not consistent with the traditional basis of the same.

As explained, not all lenders will simply ignore an existing mortgage commitment - let or not - which is what initially gave birth to the LTB product.

And as explained, a LTB mge was a mortgage arrangement that simply means the new lender (in respect of the applicants main residence application), is aware there is an existing mge commitment in place, on a propety that is rented. And upon this basis and rental income circa @ 125%, simply exclude this commitment from their residential affordability calcs (often subject to sight of the AST and confirmation the exis lender has given permission for the let).

Of course some lenders and IF was one of them, didn't officially offer LTB mortgages, but accepted apps for 2nd mortgages for main residences, with their approach that they simply didn't care or check if the exis property was rented or not. They choosing to just ignore it as part of their own affordability calcs, as long as the applicant confirmed the property to be mortgaged with them was to be their main residence.

Indeed, for your clarification let me refer you to the attached definition which I have googled this am for your benefit ...

http://www.godirect.co.uk/mortgages/let-to-buy-mortgage.php

I am also irritated by incorrect advice, and those who don't check facts before posting - and do hope this post sets the matter straight for all.

Oh by the way I didn't advise the OP to apply to their existing lender - Santander (Abbey are a defunct brand). I actually advised they may restrict borrowing, in order to limit their exposure. So once again, do get your facts straight before committing yourself.

Hope this helps

Holly