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2nd mortgage
DM118
Posts: 21 Forumite
Hi,
I have a flat for the last 14 yr with approx 35k left and approx 4 years remaining on a repayment mortgage from a high st bank. 1st year I lived in the flat but last 13 yrs it's been rented.
Since then I married and with 2 babies, so looking buy a house. Been looking for house in the last month, so I thought I need to sort out mortgage. Mortgage Ltv, 65%..so have 35% deposit if that makes sense.
If I apply for a mortgage they would know I have another property and may reject my application.
Do I pay off my first mortgage, and therefore have nothing to hide, but have a smaller deposit.
Or change my first mortgage to a btl...do I have to tell them I rented the place for the last 12 years.
Thanks
I have a flat for the last 14 yr with approx 35k left and approx 4 years remaining on a repayment mortgage from a high st bank. 1st year I lived in the flat but last 13 yrs it's been rented.
Since then I married and with 2 babies, so looking buy a house. Been looking for house in the last month, so I thought I need to sort out mortgage. Mortgage Ltv, 65%..so have 35% deposit if that makes sense.
If I apply for a mortgage they would know I have another property and may reject my application.
Do I pay off my first mortgage, and therefore have nothing to hide, but have a smaller deposit.
Or change my first mortgage to a btl...do I have to tell them I rented the place for the last 12 years.
Thanks
0
Comments
-
Your flat has to have permission from the lender for you to let it out, why have you not done this?
Can we assume that as you didn't ask for permission you've also not been paying tax on the rental income?
Personally I'd speak to your bank about consent to let, see what price they might offer then look around for a BTL.0 -
you need to declare your existing mortgage to your new lender.
Some will ask you to prove your existing property is on a buy to let mortgage or that you have consent to let from your lender. Some will not ask for proof.
Either way you should inform your existing lender that you are letting the property out in any case.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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