Second Mortgage

Tigermakabelli

Hi ,
Due to work my wife is looking to buy another house. She has currently a joint mortgage with me will se be eligible to get a residential mortgage or would it have to be a BTL? If it was residential would her having a mortgage already with me affect her LTV?

Thanks
Tiger

glosoli

If she is looking to rent the property out, it will be a buy to let,

If she is looking to reside in the property, it will be a residential mortgage,

With the lender I work for, if you have a residential mortgage with us already, the second would be classed as a second residential mortgage, which has a max LTV of 80%, however if the first residential mortgage is with another provider, and will be the first residential mortgage with us, it would be max 90%.

ACG

You can do either however it will be subject to affordability, use of the property and lenders criteria.

Based on what you have said I assume she will live in one for work during the week maybe and the other at weekends? If so then her income would be assessed with the current mortgage in the background. Assuming incomes are enough it should be fine.

It might be worth speaking to a broker as there are a lot of things to consider - including the new higher rate stamp duty.

Tigermakabelli

Yes- live in one during the week and come back to the other on the weekends...so she would need a 10% deposit correct and it would be classed as a second residential mortgage?
First mortgage is with the Halifax..

ACG

Yes, but you need to run this by any lender before applying.
They may have concerns about the property being empty at weekends or how you can afford the 2 mortgages and associated bills etc.