Second mortgage with a first time buyer...can it be done?

rjwill10

Hi,

Can't find anything online to answer this, so thought i'd give this a go :-).

Essentially I have property that is mortgaged under my name only. I am now considering buying a second property with my girlfriend, and renting out my current property. It seems getting a second mortgage is a bit of a nightmare.

If my girlfriend (a first time buyer) and I apply for a joint mortgage, would we have to apply for it to be a second mortgage, or could we apply for a normal residential mortgage type based on my girlfriend being a first time buyer?

Thanks

foxy-stoat

You apply for a joint mortgage, that's it really.


As long as your current lender agrees consent to let, you have enough equity in your property, the rent payments are 140% higher than your mortgage payments, you have researched being a landlord and crunched the numbers for the next 3 years and can afford to have voids and a few months of non-payment of rent, then go for it.


You will need to pass the new lender's affordability criteria and the first property needs to be self funded, so you may struggle unless its in a desirable area and little risk of it being empty for months.

rjwill10

Thanks, that makes sense. Not sure the rental income will be 140% higher though, but I doubt the house will ever be empty for long periods as it's in the centre of Cardiff. I guess I'll just have to apply and wait to see.

kingstreet

You should speak to an independent broker about this. It's called a 'let to buy' proposition and there are ways of approaching it which make some lenders useless and others absolutely superb.

Don't forget the increased stamp duty on the new property and the implications of being a landlord.