Getting a second mortgage

fluffysheep

I'm interested in getting a second mortgage. My existing mortgage is for a house which I currently rent out to a tenant, due to relocating away from that area. I'm renting where I live now but would like to buy a new property to live in here.

Can anyone tell me if a new borrower would need a valuation of my existing property? Or would it just be treated as an income and expenditure?

I suspect if I were to get a valuation of my existing property it would be in negative equity as I've been unlucky in the location in which I purchased. Making the payments is not an issue for me, and it will be paid off by the end of the term (in sixteen years).

kingstreet

I assume you are asking about the relationship between your current let/property mortgage and a new lender for the new/next (not second) mortgage?

Typically, as long as you have consent to let from your current lender and the let is considered self-financing (rent = 125% of monthly mortgage interest assuming perhaps 6% per annum) you should be able to obtain a mortgage for a new residence.

Your existing property won't need to be revalued.

You'll need at least 10% deposit and with some lenders more, so consulting an independent broker might be an idea to ensure you get the right lender for your needs.

fluffysheep

kingstreet wrote: »

I assume you are asking about the relationship between your current let/property mortgage and a new lender for the new/next (not second) mortgage?

Typically, as long as you have consent to let from your current lender and the let is considered self-financing (rent = 125% of monthly mortgage interest assuming perhaps 6% per annum) you should be able to obtain a mortgage for a new residence.

Your existing property won't need to be revalued.

You'll need at least 10% deposit and with some lenders more, so consulting an independent broker might be an idea to ensure you get the right lender for your needs.

Thanks, that's exactly what I mean. That is reassuring that it wouldn't automatically exclude me. I'll speak to a broker and see if I can get something to suit.