advice please

herbiesjp

As long as you have sufficient income to support both mortgages, you can indeed have two residential mortgages

If a property is going to be let out then consent to let or a BTL will be needed

HelpWhereIcan

siocledpoeth wrote: »

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

siocledpoeth wrote: »

mine 32,000
other half -self employed
present property 160,000
new property - repossesion - intend to offer 155,000
have 16,000 towards deposit

The quick answer is yes, you can do this. Depending on what credit commitments you have and what income your partner has and what proof of their income you have you could have a choice of pretty much every lender.

Based on your income alone, assuming no credit commitments, you need apprx 4.3 x your income which can be done at 90%. Obviously, every bit of additional income you can prove for your partner reduces that multiple required and therefore your choice of lender increases.

How long you have been mortgage free is irrelevant for just about every lender I can think of.

Depending on how much you could rent the property out for, you may be able to do it as a buy to let as there are lender who will agree a buy to let mortgage if yu have a 10% deposit.

If you have no mortgage on your current property you obviously do not need permission to let it out and I would make the decision on whcih property to let out based on which one you would be living in.

Get some advice from a fees free whole of market broker. They would have no problem arranging this for you without having to commit fraud :rolleyes:

Use personal reccomendations to pick one or even something like the Yellow pages etc. No harm in speaking to more than one and always make sure to ask the questions Martin suggests in http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101649966,86816#step2.

Be careful of anyone who approaches you unsolicited and use the services of a face to face adviser unless you are confident enough to deal with someone via post & email.

Hope this helps

UK007BullDog wrote: »

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.

Sorry, but you are wrong. Whether a lender allows someone to have more than one resdential mortgage is not a matter of law, it is a matter of lending policy.

The fact that the lender you work for does not allow it makes them the exception rather than the rule and it is inappropriate for you to be making statements about fraud in this context. It can change the LTV allowed etc http://forums.moneysavingexpert.com/showthread.html?t=435399 , but it would not stop most lenders offering a mortgage from their residential range as long as affordability can be shown.

If you re-read the OP, the current property is unencumbered and so the question of 2 residential mortgages does not even come into it.

There are lenders who are main residence only, but there are just as many who will allow a second home.

Again, how long a customer has been mortgage free is irrelevant to most lenders; although some will treat someone as a first time buyer if they have not had a mortgage in the last year (or 3 years in some cases) which can affect underwriting requirements (payslips required etc) but can also work for the customer if they then qualify for a first time buyer only product.

:beer: