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advice please
siocledpoeth
Posts: 79 Forumite
this is my situation. i have repaid mortgage on my own house. we are still working on the property.a nearby property has come on the market in which i am very interested, either to live in or rent.
i would like to hold on to both properties. where do i stand as far as mortgages? eg if i buy the second property and rent while i finish mine.
would i have to go for buy to let? would i be at a disadvantage? would i be better off trying to finish and renting mine?
all options a possibility.
any ideas advice appreciated.
thanks
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Comments
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If your home is habitable, you could always raise a mortgage on it to fund the purchase of the other property.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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You can only have one residential mortgage. If you paid your mortgage off most lenders want you to be mortgage free for at least 12 months or longer before they will offer you another residential mortgage.
If that is not the case then you have to get a BTL mortgage.0 -
it has only been 8 months since repaying mortgage.
is there much difference between buy to let and residential? would i be better off holding out or trying to find residential mortagage?0 -
siocledpoeth wrote: »it has only been 8 months since repaying mortgage.
is there much difference between buy to let and residential? would i be better off holding out or trying to find residential mortagage?
There is no problem here.
What are your incomes?
What is your present property value?
What is the new property value?
Do you have any cash for a deposit?
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
I dont think I agree. You can have 2 mortgages as long as you can afford both on the income multiples. If you are going to rent one then that should be a BTL. But there is nothing to stop you raising money on your own house many lenders class it as a remortgage even though there is no mortgage at present. You may even get free legals and valuation but whether that is cost effective will depend on size of mortgage.UK007BullDog wrote: »You can only have one residential mortgage. If you paid your mortgage off most lenders want you to be mortgage free for at least 12 months or longer before they will offer you another residential mortgage.
If that is not the case then you have to get a BTL mortgage.I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0 -
mine 32,000There is no problem here.
What are your incomes?
What is your present property value?
What is the new property value?
Do you have any cash for a deposit?
JoeK
other half -self employed
present property 160,000
new property - repossesion - intend to offer 155,000
have 16,000 towards deposit0 -
siocledpoeth wrote: »mine 32,000
other half -self employed
What are the sellf employed earnings?siocledpoeth wrote: »present property 160,000
Do you have a mortgage on it and if so, for how much?siocledpoeth wrote: »new property - repossesion - intend to offer 155,000
have 16,000 towards deposit
Can you pay the £1,550 stamp duty, legal fees etc. besides the deposit?
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
He was talking about residential mortgages. And no you cannot have two residential mortgages. One would have to be a BTL is they are running concurrently. Because the second lender will do a search and will find out about the first mortgage and then will start asking questions or they will assume you are selling the first property. Some people managed to pull a fast one and get two residential mortgages but that is fraud and eventually they will be found out.0
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You can buy it on a residentia if you intend on living in itl no problem no fraud You have no mortgage at present and waiting 12 mths is rubbish
Or you could buy it as a btlI like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0 -
You can have more than one residential mortgage but only one property can be your primary residence for the purposes of capital gains and income tax.
Lots of people have more than one residential mortgage for a second home or a flat for the children while they are at uni etc.
However in this case there would have to be permission to let given by the lender thus the status of the mortgage would invariably be that of BTL0
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