Two mortgages

Wh05apk

holly_hobby wrote: »

Firstly W. I don't "BIG" myself up 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 having a guess), and can only assume this is an issue of some sort for you.

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

So I am fully familiar with which is which, unfortunately it appears that you 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 gave birth to the LTB product.

And as explained, a LTB mge simply means that the new lender for the applicants main residence application, is aware that there is an existing mge commitment in place, on a propety that is rented. And upon this basis exclude this commitment from the affordability calcs.

Of course some lenders and IF was one of them, simply didn't care if it was rented or not, and just ignored it as part of their calcs, as long as the applicant confirmed the property to be mortgaged with them was to be their main res).

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 question others advice without the full facts - and do hope this post sets the matter straight for all.

Hope this helps

Holly

I think part of the problem here is that "let to buy" is jargon, with no standard definition.

Lenders either offer "buy to let" or "residential" mortgages with "let to buy" being a class within "buy to let"

The link you have provided is to a commercial website, which provides vague information, perhaps you could provide a link to a single lender who calls a mortgage secured on a residential home "let to buy"?

holly_hobby

Let to buy is not jargon, but a recognised industry term for the format under which the residential application is evaluated (where there is an existing mortgaged & let property).

Which was introduced by the industry over a decade ago, to take account of the growing BTL market and to accomodate and work around affordability/responsible lending issues, in respect of 2nd (main res) properties. Neither is it a term that evolved from a lenders product marketing name (although it appears TMW now use this marketing title for one of their BTL products).

Indeed as I stated earlier one (now defunct) lender marketed their LTB scheme as "next move", with their BTL product marketed as "house to house" - so you can't simply rely on a lenders marketing term to solely guide you.

The general independent definition of the term I have provided on the linked item, has nothing to do with any marketing title the provider may utilise (which could be anything or they may not use a marketing term at all), and from my reading the article (written for the layman) is anything but vague - we obviously have a different understanding of the subject.

Other than that ... I have already explained the basis of LTB, and that it relates to a residential mge - and for the sake of my sanity and a truce, lets agree that you wish to holdfast with your interpretation. And instead get back to the OPs situ, which is what this thread is actually about.

Holly

PS - W. a further hunt for general info in order to satisfy the debate threw up this link, its an IFA brokerage's brief explanation of LTB & distinguishing features that seperate it from BTL. Hope this helps clarify ... http://www.independentmortgagenetwork.co.uk/let-to-buy-mortgage-advice.html

I'm sure you now must accept, that 3 completely independent mortgage professionals explanation of LTB, can't all be wrong and woefully "mis-understand" the arrangement, in comparision to your own interpretation and experience of the term ... and hope this matter can now be put to bed with a shake of hands. H.

unhappy_shopper

Neesieb01 wrote: »

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!

Yes, it is possible to have 2 residential mortgages on 2 different homes simultaneously if you can satisfy the lender's criteria. From our experience, we found Woolwich to be the best in this regard. Santander virtually pushed us out of their doors when we approached them. It all depends on their mortgage advisor's experience and understanding. We had a fairly young and inexperienced person at Santander dealing with our case, who couldn't even understand as to why we would buy a second home without selling the first. HTH.