Second Home Mortgage

strikeforce

Hi All,

I was wondering if someone could give me some advise on my situation please.

We currently own our property which we paid £143k for and has now been valued at £150k and we owe 125k on the mortgage at present which is a joint mortgage.

Recently we have seen a property come up for sale which has really caught our eye. The property is on the market for £185k and is priced well under what the averge for the area is, we currently have enough money for a 10% deposit.

We have now put our current property for sale. However we are worried that the house we have seen will be sold before we are able to sell our property. So we have therefore thought about having two mortgages for a temporary period.

We have been to see Nationwide who confirmed that we could comfortably afford both mortgages at the same time. However I was browsing the Nationwide website and noticed that on their lending criteria it stipulates that a second home requires a deposit of 15%, which is something they didn't mention when speaking to them in branch.

So my question is would this be classed as a second home? If so is there any lenders out there that allow a 10% deposit on a second home.

So far I've looked through the lending criteria for Natwest and the Post Office and I couldn't see any where that mentions the need for a bigger deposit on a second home.

Thanks

Dave_Ham

Subject to the detail, this is possible but not on the most attractive rates.

Think very carefully as the expensive you may run up could mitigate the saving on this house.

If you remain keen, suggest you seek out a broker.

Good luck

strikeforce

Hello,

Thanks for getting back to me.

Brilliant I'll call Nationwide today to confirm and maybe look at other lenders as well.

Thanks

GMS

Why not use a broker? Would save on the leg work.

Dave_Ham

Save the call to Nationwide, it is 85% loan to value and lucky you checked at this point.

ExpertAdvice

Hi

-What will you be doing with both the properties?
-Will you let out one of them or would both be occupied by the family members? Lenders would be interested in knowing.
-Also, what would you do if the sale of your property takes longer than expected and you are stuck with 2 mortgages for longer period?

Sale and purchase don't always happen simultaneously and lenders allow a few months before you can complete the entire process of sale and purchase.

strikeforce

The new house would become our family home while our current house would then be empty waiting for a sale to complete.

I will speak to a broker today, is there any recommend brokers?

Thanks

GMS

What are your incomes?

How much is current mortgage monthly?

First thing to establish is if you can support 2 mortgages.

strikeforce

Current Mortgage is £699 per month
Incomes are 50k and 27K

GMS

Income in theory supports both. However it would need a full affordability assessment.

Broker should be able to tell you if it is possible after completing a fact find.

strikeforce

Thanks for getting back to me GMS, I appreciate you advise on this.

I'll get in touch with a Broker this evening and discuss our requirements. I noticed that London And Country seem be to be recommended on here so I'll try them first.

Do you think it will be possible for a Mortgage company to allow the second Mortgage on a 10% deposit, I understand that the interest will be higher.