Can someone have 2 mortgages on 2 properties?

SophieJB

A friend of mine lives on her own in a house being bought by herself with a mortgage. She wants to know if she can buy another property jointly with another person, while staying in her present house.

Her friend would be living at the 2nd property but their two names would be on the mortgage so she wants to know if she can have 2 mortgages and would the 2nd home be referred to as a buy to let property?

Help would be appreciated (friend doesn't have a computer at home and is not allowed on Internet at work so I'm trying to help).

THANKS

Mr_helpful

yes she could do that as long as incomes stacked up The second is not B2L unless she is buying it herself and charging her friend rent

Stewboy1978

I kind of have this.

Property A I have in - Have a joint mortgage with my wife

Property B I rent out - I have a flexible mortgate on this property.

SophieJB

Thanks guys! She was also told that a 2nd mortgage is possible but will be at a slightly higher rate of interest than the 1st mortgage. She wouldn't be actually collecting a rent from her friend as she would be hopefully sharing the 2nd mortgage, but we wondered if the Bank/BS would look upon it as a BTL property!

Mr_helpful

There is no need for it to be a higher rate and it is not a B2L

regularsaver1

as long as her income could be assessed as affording both mortgages?

herbiesjp

If the personal income can support both mortgages, then two mortgages could be applied for at normal rates

If not, then a BTL would be needed with her friend paying the rental income

Stewboy1978

It also depends on the LTV of the properties.

My biggest mortgage is where I live - LTV at time of purchase was 72%

My "2nd" property - LTV at time of purchase was 60%

Due to such a low LTV the Abbey were happy to give me both at "normal" rates.

However they do look at the rental market in the area where you are trying to let. My 2nd is a 1 Bedroom flat in Edinburgh City Centre so the property will always be let.