Second mortgage??

Ghayes85

Hi

My hubby and I are looking to move house. The house we live in at the moment had a small mortgage in just the hubbys name. I own a property with a small mortgage which my parents now live in. They pay the mortgage to live there, I just hold it in my name. my question is - will this affect mine and hubbys chances of being accepted for a mortgage? Is it even allowed for me to hold 2 mortgages? I don't want to change the mortgage to a buy to let as I am not profiting out of it.
Thanks!

Thrugelmir

The existing mortgage will be taken into account in the application process.

Ghayes85

Thanks. I know it will be taken into account but Will the fact that I don't pay the mortgage be taken into account too?

Typhoon2000

Ghayes85 wrote: »

Thanks. I know it will be taken into account but Will the fact that I don't pay the mortgage be taken into account too?

No, you will assumed to be responsible for paying the mortgage.

AnotherJoe

The house your parents live in should also be on a BTL mortgage. The fact you don't make a profit from it is irrelevant as far as the lender is concerned. Are you also following all the rules regards being a landlord, as that's what you are? Rules on gas and electricity certificates, declaring it on your tax return and so forth?

Yes you'll have to declare the exiting mortgage but you can also declare the parents payments as income so this will help a bit.

You will also have to pay extra 3% stamp duty when you go on the new mortgage as you'll be buying a second property.