Buying a second home for son to live - BTL or First Time Buyer?

planetmsn

We have about £60k and we're thinking to pay off our current mortgage with it. We are then thinking to get a new mortgage for a second house, where our son will be living with his friends and basically be paying the rent (mortgage amount).

Would we have to get a BTL mortgage or a normal First Time Buyer mortgage, since our son (a family member) is going to live in the house!

Any ideas?

Senior_Paper_Monitor

Something is probably do-able - but not the way you are planning.


Contact an experienced (not bank / estate agent) broker

planetmsn

I would, but they are quite expensive. There are no free independant mortgage advisors these days apparently, hence trying my luck here

Senior_Paper_Monitor wrote: »

Something is probably do-able - but not the way you are planning.


Contact an experienced (not bank / estate agent) broker

GMS

planetmsn wrote: »

I would, but they are quite expensive.

What do you class as expensive? If it gets you what you want with the correct lender at the best rate it is potentially money saved rather than wasted fees on failed applications.

somethingcorporate

We've been looking to buy a house for my sister to live in via B2L.

Because it is a family member it has to be a regulated B2L which really limits the choice of lenders (to 1 I have found so far) and the income and rental requirements are punitive.

You may be better to remortgage your current house and buy the rental property outright. I suggest you try talking to london and country (http://www.lcplc.co.uk/?gclid=CJij3NnlpsYCFUcTwwodg6kBAA) they don't charge for advice and take commissions from the lender if you go via them.