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Can I have two mortgages?

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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?

Comments

  • ACG
    ACG Posts: 24,542 Forumite
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    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Poniato
    Poniato Posts: 72 Forumite
    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
    ACG Posts: 24,542 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    The rates will be higher than the best buys but should not beyond the realms of normal.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,054 Ambassador
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    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.
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  • Poniato
    Poniato Posts: 72 Forumite
    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
    amnblog Posts: 12,728 Forumite
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    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.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Poniato
    Poniato Posts: 72 Forumite
    Do you mean speak to the solicitor or mortgage advisor?
  • silvercar
    silvercar Posts: 49,524 Ambassador
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    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.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Poniato
    Poniato Posts: 72 Forumite
    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?
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