Obtaining second mortgage

Saintexupery

I am in the process of trying to buy a second home. I have a house that is rented out presently in northern Ireland after I moved to the south of England. (peters field).

I am renting at the moment but have seen a house that I would like to buy, £250000. I have a deposit of £80000 but the mortgage advisor that I met with from the real estate agency is telling me that this is a difficult mortgage and will take around six weeks to process while he explores the possible options.

The rent covers my mortgage in N.Ireland by about 150%. I earn £55000 per year made up of £32000 salary and the rest in widows pension. I'm 46 years of age and have a decent credit history and stable job. No car loans etc.
Can my application be so difficult? Am I better off looking at other options?

It's just that I'm paying out £1100 per month in rent and that seems crazy to me. Any advise?

amnblog

There must be another issue? Are you full time employed? Is the NI property rented to family?

Wh05apk

Seems like a straight forward case, can't see any issues from your post.

beckysbobbles1

It sounds like you'd got an inexperienced mortgage advisor.

If the proeprty in N.Ireland is on a buy to let basis, then there should be no issues with you getting a residential mortgage.

You are only allowed one residential mortgage so unless this is the problem, I would suggest talking to another lender.

A usual mortgage application is around 4-6 weeks so I don't see this as being excessive in time.

Best of luck.

Wh05apk

beckysbobbles1 wrote: »

It sounds like you'd got an inexperienced mortgage advisor.

If the proeprty in N.Ireland is on a buy to let basis, then there should be no issues with you getting a residential mortgage.

You are only allowed one residential mortgage so unless this is the problem, I would suggest talking to another lender.

A usual mortgage application is around 4-6 weeks so I don't see this as being excessive in time.

Best of luck.

You can have as many residential mortgages as you like, provided your income supports it, and it meets lenders criteria, they may suspect that further resi mortgages are in fact being rented out.

I would expect to place this within a day or so, the entire process to completion may take 6 weeks, but initial acceptance should be within a few days subject to valuation.

kingstreet

beckysbobbles1 wrote: »

You are only allowed one residential mortgage

Not the case. You can have as many residential mortgages as you can afford.

Assuming the OP has consent to let and an AST for the current property the mortgage on a new property, particularly at 68% LTV should be dead easy.

Is there any other issue?

beckysbobbles1

I stand corrected. I was always taught (as a previous mortgage adviser years ago) that you are only allowed on residential mortgage.

Perhaps is a strict affordability issue.

Saintexupery

I chose to work 30 hrs a week so I can pick my daughter up from school but is a permanent job. I'm an occupational therapist and have been in this present job for nearly three years. If the 30 hrs a week was a problem it would be very easy to amend those hours to a 40 hour week. My employer has been asking me to increase my hours.

The house in N.Ireland isn't rent to family. Ordinary tenants. Long term tenants. It is in negative equity by around £40000 however with the N Irish property market collapse. My monthly tracker mortgage is £217 per month. The rent is £600 per month.

Not sure, if the application is a problem. I haven't heard back from the real estate mortgage advisor. (ten days) I was just a little worried when he said it could be a tricky application and then I was reading on here that it was important to look at whole of market independent advisors.

I appreciate your helpful advice. Thank you.

Wh05apk

beckysbobbles1 wrote: »

I stand corrected. I was always taught (as a previous mortgage adviser years ago) that you are only allowed on residential mortgage.

Perhaps is a strict affordability issue.

Probably a lender specific thing.

Wh05apk

Saintexupery wrote: »

I chose to work 30 hrs a week so I can pick my daughter up from school but is a permanent job. I'm an occupational therapist and have been in this present job for nearly three years. If the 30 hrs a week was a problem it would be very easy to amend those hours to a 40 hour week. My employer has been asking me to increase my hours.

The house in N.Ireland isn't rent to family. Ordinary tenants. Long term tenants. It is in negative equity by around £40000 however with the N Irish property market collapse. My monthly tracker mortgage is £217 per month. The rent is £600 per month.

Not sure, if the application is a problem. I haven't heard back from the real estate mortgage advisor. (ten days) I was just a little worried when he said it could be a tricky application and then I was reading on here that it was important to look at whole of market independent advisors.

I appreciate your helpful advice. Thank you.

As has been said it shouldn't be an issue, you need to get back to them and find out what the delay is, possibly depending on where you are in the process, it may be worth seeing an independent broker, and moving to them?

kingstreet

beckysbobbles1 wrote: »

I stand corrected. I was always taught (as a previous mortgage adviser years ago) that you are only allowed on residential mortgage.

Perhaps is a strict affordability issue.

When I worked for a branch of a certain Scottish bank a number of years ago, a certain popstar had five separate residential mortgage accounts at that time.

You could do "famous people" searches, if you knew their sortcode.