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Second Residential Mortgage - Possible?
stargirl99
Posts: 2 Newbie
Hi, I'm hoping that some of you will be able to share some wisdom on our current situation as we are looking to buy a second home.
My mother is retired and is struggling to manage on her current income and as a result we are looking at ways to help. Her property is worth approx £60 - 65k and she has a small mortgage outstanding so downsizing is not an option. In addition the house could do with some money spent on maintenance to avoid bigger problems further down the line, small roof repairs etc.
We had thought about possibly buying her property which would enable her to continue to live there rent free, pay off debt/mortgage and allow her a better standard of living during retirement. In addition she would pay for the maintenance work to be done on the property while living there. For us it would be a long term investment.
Having had a look it seems like it might be possible to purchase this with a second residential mortgage but keep coming across conflicting information about whether this is possible or if it still comes under BTL despite there being no tenancy agreement/rent payments etc. We could afford to have max 85% LTV so BTL is out of reach at the moment until we could save a bigger deposit.
We have a mortgage on our home on which we owe £150,000 (fixed rate with ERC so don't want to make any changes there)
We have a joint income of over £65,000 and other than credit cards (approx £6k on 0%) have no other loans/finance etc so would comfortably be able to afford the additional mortgage repayment - if a lender would be willing!
Not sure what other information would be significant but hopefully someone can offer some advice.
Thanks in advance
My mother is retired and is struggling to manage on her current income and as a result we are looking at ways to help. Her property is worth approx £60 - 65k and she has a small mortgage outstanding so downsizing is not an option. In addition the house could do with some money spent on maintenance to avoid bigger problems further down the line, small roof repairs etc.
We had thought about possibly buying her property which would enable her to continue to live there rent free, pay off debt/mortgage and allow her a better standard of living during retirement. In addition she would pay for the maintenance work to be done on the property while living there. For us it would be a long term investment.
Having had a look it seems like it might be possible to purchase this with a second residential mortgage but keep coming across conflicting information about whether this is possible or if it still comes under BTL despite there being no tenancy agreement/rent payments etc. We could afford to have max 85% LTV so BTL is out of reach at the moment until we could save a bigger deposit.
We have a mortgage on our home on which we owe £150,000 (fixed rate with ERC so don't want to make any changes there)
We have a joint income of over £65,000 and other than credit cards (approx £6k on 0%) have no other loans/finance etc so would comfortably be able to afford the additional mortgage repayment - if a lender would be willing!
Not sure what other information would be significant but hopefully someone can offer some advice.
Thanks in advance
0
Comments
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I think to have a residential mortgage it has to be your main residence - if someone else is living there then its more likely BTL.
Talk to a broker. I've had two residential mortgages at the same time, its possible but I'm not sure if your situation qualifies.0 -
Thanks for your reply.
I've asked a broker to take a look at it and I've spoken to a few lenders but getting mixed messages from some depending who I speak to.
It also appears that the fact we are buying from my mum and she will continue living there could be an issue to some lenders0 -
If a broker is unable to find you a second mortgage for this property has your mum considered equity release?0
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