buy second property

london_79

Hi,
We are looking to purchase a second property with the view to it being our residential property.

As a result we will be renting out our original property.

The gray area for me comes in the type of mortgage required for the new property.

Our current property is our residential property.
Will I be able to apply for a second residential mortgage for the new property I am looking to buy, considering I already have a residential mortgage?

And at what stage am I required to convert the original property mortgage into a BTL mortgage, considering I am in the middle of a two year fixed deal.


Hope that is clear


Any info\advise would be appreciated
Anthony

Thrugelmir

You'll need to inform your existing lender of your intention to let. So a good place to start would be to find out what their current policy is. Depending on who your lender is there's no certainty that your current interest rate will remain the same.

Cornucopia

The timeline is pretty straightforward...

- Whilst you have two residential properties, you can have two residential mortgages, subject to the policies of the lender(s) for multiple mortgages, affordability, salary multiples and LTV.

- As soon as you rent out a property, it can no longer be on a residential mortgage, unless you have received Consent to Let from the lender.

- Once you have let out the other property, it (generally) doesn't count towards allowances for a residential mortgage.

To simplify the timing and logistics of this there are Let-to-Buy mortgages which allow you to be "in the process" of moving out prior to letting a property. If you are in a lock-in period, this may not be an option, and you may have no other option but Consent to Let.