Can I have two mortgages?

Poniato

Hello there,

I'm a first buyer house. I don't own any house yet. What I would like to do is to buy one house where I'm gonna to live and second house buy for renting (buy to let). My question is if it possible to buy two houses in the same time? I have found perfect two houses which I want to buy, but I have read that in some cases I will need to have firstly residential house before I will buy next house for `buy to let`. Has anyone got any experience with it?

ACG

The buy to let will be a problem but not impossible to place on the basis of you being a non home owner.

Speak to a broker, but you should be fine in the main even if you do not have every lender available to you for the BTL.

Poniato

Our broker said that most likely it's not possible to do it. Even if that will be possible, the lender will charge me a lot of higher interest rates than `buy to let` which is already more expensive than interest for a standard house.

ACG

The rates will be higher than the best buys but should not beyond the realms of normal.

enthusiasticsaver

Do you have deposits for both houses and enough income to service both mortgages should you not find a tenant for the BTL immediately?

The BTL will need a 20% deposit normally and charged at a higher rent. I believe due to tax changes the rent is subject to income tax with no relief for the mortgage interest and stamp duty is doubled.

Poniato

How to calculate tax which I will need to pay to Government from my income from rent? I'm guessing that I will pay 3% of stamp duty for a second house (<300k).

amnblog

This is tricky but possible to buy two properties at the same time as a first time buyer. You should speak to an Accountant about the tax implications before you do anything else.

Poniato

Do you mean speak to the solicitor or mortgage advisor?

silvercar

Poniato wrote: »

Do you mean speak to the solicitor or mortgage advisor?

Accountant for tax advice.

They is a lot to gain if you are buying both at the same time in tax terms.

Poniato

I have got two more quite important questions.

1. When will I need to pay my deposit? At this moment I need to wait around 3 months before I will get keys to my first and I will start paying the mortgage. But the question is when exactly I need to pay out my deposit, e.g. 1 week before or 1 month before I will move in?

2. I have `Help to buy ISA` account. I'm wondering how can I spend this money? Can I put that money on deposit or pay out my solicitor and mortgage advisor? Or it's total price of the house - bonus from ISA? How does this ISA bonus work?