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Mortgage on second home for renovation
rich3245
Posts: 21 Forumite
Hi,
Any help on my below query greatly appreciated,
My wife and I own a property with a mortgage and we are considering making an offer on a second property that requires renovation to make it habitable. We would like to remain living in our current property in the meantime whilst we carry out renovations on the second property before eventually moving in to the second property and then selling the current property.
I understand that most providers will allow two mortgages (and some allow two properties to be combined into one mortgage), however in reading around the subject it seems this is normally when one of the properties is being let out.
Therefore, my questions are;
Is it standard for providers to allow a second mortgage for the purpose I describe above?
If not, are there particular providers that do allow this?
In either case, are there any particular pitfalls I should be looking out for?
Are providers likely to lend less in total when two properties are involved rather than just one?
In terms of finance, the purchase price of the first property was £165k, the second property asking price is £250k and we would be able to put down a combined deposit of about £150k. By going through some mortgage calculators it does appear that we would be able to secure the remaining £265k mortgage (though of course these calculators assume that this is for a single property).
Very many thanks for any help /advice you can provide
Any help on my below query greatly appreciated,
My wife and I own a property with a mortgage and we are considering making an offer on a second property that requires renovation to make it habitable. We would like to remain living in our current property in the meantime whilst we carry out renovations on the second property before eventually moving in to the second property and then selling the current property.
I understand that most providers will allow two mortgages (and some allow two properties to be combined into one mortgage), however in reading around the subject it seems this is normally when one of the properties is being let out.
Therefore, my questions are;
Is it standard for providers to allow a second mortgage for the purpose I describe above?
If not, are there particular providers that do allow this?
In either case, are there any particular pitfalls I should be looking out for?
Are providers likely to lend less in total when two properties are involved rather than just one?
In terms of finance, the purchase price of the first property was £165k, the second property asking price is £250k and we would be able to put down a combined deposit of about £150k. By going through some mortgage calculators it does appear that we would be able to secure the remaining £265k mortgage (though of course these calculators assume that this is for a single property).
Very many thanks for any help /advice you can provide
0
Comments
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to be clear, do you really have 150k in cash for use as a deposit?
do you have cash on top of that to a) fund the higher rate SDLT you'll need to pay and b) fund the "refurbishment" works?
if your o/s mortgage on current home is still 165k then yes, it appears you need to borrow 265k and would be assessed on whether you can afford that total
the loan on the second house may well be at higher rates because that is what happens with second home mortgages but in principle you could have 2 mortgages if you can afford the 265k combined0
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