Is it possible to have two mortgages

paye

Hi,

Just looking for a bit of advice on mortgages really thought this will be best place to ask .

I was a first time buyer two years ago when I bought a 2 bed house it was a good stepping stone for me and my wife. Now that my family is growing with a new baby boy on the way next month my house is a bit small as I already have 2 year old. I've got £150k remaining on my current mortgage with the property valued at £225k.

what I'd like to know is if it would be possible to convert my existing mortgage into a buy to let mortgage (my current fixed rate has already ended) and take out another mortgage for a new house. I was looking to borrow about £180k with a 20% deposit. i know my rental income will cover all of my mortgage on my current property with a little bit left over. if I can do this would I get a better rate on my new property.

Any advice welcom:beer:

theartfullodger

Yeah: I've got 3 mortgages currently, looking for a 4th.. But all your lenders need to understand your complete position...

kingstreet

You don't have to convert to a buy to let. You simply ask your existing lender for consent to let. This may result in a charge, increased rate, or both.

You should have no problem with a new 80% mortgage with the let property and mortgage in the background, although one or two lenders will want to "tax" your income with the mortgage payments, just in case you have no tenant for a period and would have to pay two mortgages.

There are lenders who ignore the let property/mortgage and you would need to find such, if your income won't cover both mortgages.

Annisele

G_M has a mammoth post covering some of the things new landlords should be aware of - including info on mortgages.

paye

kingstreet wrote: »

You don't have to convert to a buy to let. You simply ask your existing lender for consent to let. This may result in a charge, increased rate, or both.

You should have no problem with a new 80% mortgage with the let property and mortgage in the background, although one or two lenders will want to "tax" your income with the mortgage payments, just in case you have no tenant for a period and would have to pay two mortgages.

There are lenders who ignore the let property/mortgage and you would need to find such, if your income won't cover both mortgages.

Thanks for the post 'kingstreet' got a better understanding of what to do. Going to ring up my lender on monday and take it from there.
:beer:

Annisele wrote: »

G_M has a mammoth post covering some of the things new landlords should be aware of - including info on mortgages.

excellent link :beer:

thank you,

G_M

Annisele wrote: »

G_M has a mammoth post covering some of the things new landlords should be aware of - including info on mortgages.

New Landlords (information for new or prospective landlords)

edit: and yes, you can have 2 mortgages so long as you declare all your income etc and debts/other mortgages, and comply with their requirements.