Having two residential mortgages at the same time

chelle333

Hi, We are in a dilemma and do not know if its possible, My partner and I have a joint mortgage on our current home, but we would like to purchase a new home to live in without selling ours first, we have been approved a new mortgage because we have saved enough to have a deposit for this second property and are fortunate to have enough income to afford two, but was just wondering do we have to have a consent to let mortgage on our current home before purchasing second home, because has soon as we have moved out of our current property we would like to put it up for sale after some decorating and are not going to rent it out at all.

kingstreet

No, you don't need consent to let. Simply let the new lender know the old mortgage will not be repaid before completion. If you can afford both, they should not have an issue.

The only problem may be the lender treating the new property as a second property and only lending a lower max LTV, say 85% or 80% if they do that and you don't have enough.

chelle333

Thank you :j we have got 15% deposit

kingstreet

So, you need to be careful of lenders who max out at 80% if they are going to class this as a second property.

chelle333

We have got a AIP at 15% deposit and did tell them that we were going to sell ours at a later date or maybe look into letting out, they did put the current mortgage payment in as outgoings when calculating if we could afford both, but what i was worried over was that we now just want to sell it. and didn't know if we could get two mortgages without renting one out.

kingstreet

It should be fine if they agreed it taking the mortgage payment into account without any rental income to balance it.

chelle333

kingstreet wrote: »

It should be fine if they agreed it taking the mortgage payment into account without any rental income to balance it.

Thank you for taking the time to reply :beer:

R_P_W

I had to do this last year. Moved to London with work, had a property in midlands but wanted to buy in London.

Different lenders looked at the situation differently. In the end went with nationwide.

Property took much longer to sell and at a price lower than I had hoped. I did look at renting it a couple of times, but preference was to sell.

Finally sold and completed 14 months later!