Remortgage to Buy another house

zayn

Hi All
I have a freehold property now after many years of mortgages and i am looking to re-mortgage this to purchase another property. I do not plan to sell the 1st property. Is this a straightforward Re-mortgage or would there be other thing's i need to look out for ?

Thank you

Senior_Paper_Monitor

Not all lenders will do this but is certainly do-able if your age/income/credit history/plans (for new property) stack up.

kingstreet

Do you mean unencumbered, as in there's no mortgage?

If you intend to live in this one and let the new one, you need a residential remortgage of an unencumbered property.

If you plan to let the current one and live in the new one, you need a let to buy remortgage of an unencumbered property.

If you plan to live in both, you would be remortgaging your unencumbered main residence to purchase a second property.

Treatment of each is different.

zayn

kingstreet wrote: »

Do you mean unencumbered, as in there's no mortgage?

If you intend to live in this one and let the new one, you need a residential remortgage of an unencumbered property.

If you plan to let the current one and live in the new one, you need a let to buy remortgage of an unencumbered property.

If you plan to live in both, you would be remortgaging your unencumbered main residence to purchase a second property.

Treatment of each is different.

Hi,
it would the 3rd option, as my sister plan's to live in the 1st property that i will be re-mortgaging to buy the 2nd which i plan to live in.

What does that come under for re-mortgaging ?

ethank

Not sure that a lender will like you giving a tenancy over a property they are lending on.

As their is a tenancy in place it makes it harder for them to repossess the property in case of you defaulting on the mortgage.

They may do it if you agree to go on BTL products and you meet the criteria for those.

kingstreet

zayn wrote: »

Hi,
it would the 3rd option, as my sister plan's to live in the 1st property that i will be re-mortgaging to buy the 2nd which i plan to live in.

What does that come under for re-mortgaging ?

IMHO that's possibly not option three, that's option two with the added complication it will be a regulated buy to let if you plan to let it to a relative.

If she will live in it rent free, you can do it on your income alone, as long as you'll clearly be able to demonstrate affordability for both mortgages to the two lenders.

Either way, you need to be discussing this with an experienced broker. Trying to piece this together with a lender will be like trying to plait sawdust.