2 residential mortgages?

meadow408

Hello all,
I’m after some advice from people who might have done this already.
I’m in the process of buying a house that need renovation/modernization in a rather prime area in Surrey. The works to the property would likely take 6-8 months to complete. I’m not really keen to live in a building site as we are also expecting our first child and I’ve recently been to see a newish built (5 years ago) terraced house ready to move in which are highly sought after rental properties.
That got me thinking about the possibility of buying both properties, live in the newer one whilst we do some work to the older one to either move in ourselves when is ready or rent it out for a few years whilst living in the newer one. The ultimate goal is to eventually move to the bigger (but older) house when we’ll be in a better position to live in the property and doing improvements to it (not very easy to do with a new born).
My question is: would it be possible to get 2 mortgages for the 2 houses?. I would put down a 15% deposit for each of them and in terms of mortgage repayments we could afford to do it even if I’ll be on maternity leave for 6 months( my employer’s policy has a 6 months full pay).
Would I need to decide upfront which house will be rented out and get a buy to let mortgage? I’m not sure I could do that at this point as it might turn out that we could get the older house to the specs we want in a shorter time and so let out the newer one or viceversa the older one might take longer to improve the way we want it but since it’s already perfectly livable and close to very good schools we could rent it out until we have the time to do the work.
I’ve heard about the possibility of obtaining consent to let from the mortgage provider, but how soon after purchasing a property could I request this?

Thank you all for your comments

holly_hobby

Yes, you can have more than 1 residential mge, as long as you can service both mortgages of course, which you say you can, so thats good.

You will be restricted LTV wise on the 2nd property, generally with a 85% ceiling.

The proplem you may have is with the property that needs work/renovation, what it will value up at, if there will be any retentions and if those will be partial or full.

Is the old house habital, and you just want to modenise it ? (ie functioning kitchen, bathroom, modern elecs, no damp or structual issues ?) If so, then whilst it won't be valued at top buck due to its dated interior, I wouldn't expect a retention.

Or are things a bit more complicated ?

With regards to the situ post refurb, you could seek consent to let from the lender on the modern house (which unfortunately they may refuse), which is really a temporary arrangement in any event and designed for accidential landlords (ie diffculty n selling, or temp relocation), and generally time bound for a 3 yr period, when the lender will ask you to tsf to a BTL with them, or move elsewhere. But that will be a suck it and see exercise at the time, come back if you need help then.

You may feel confident in sourcing lenders yourslef on this one, or alternatively the assistance of a whole of market/independent mge broker may be of great value to you.

Hope this helps

H x