Mortgage on second property

sh78

hi,
If the house one lives currently is mortgage free, and buying a second home which is going to be future home (first house, which is mortgage free, will be rented), will the second home be considered as Buy to Let? What type of mortgage should this come under?
thank you.

Nebulous2

Which one is the mortgage going to be on?

If it's the new one and you're going to live in it there is no need for buy to let, a residential mortgage will be fine.

sh78

Yes. The new home will be where one would live and current home (which has mortgage cleared will be let).

Nebulous2 wrote: »

Which one is the mortgage going to be on?

If it's the new one and you're going to live in it there is no need for buy to let, a residential mortgage will be fine.

AnotherJoe

sh78 wrote: »

hi,
If the house one lives currently is mortgage free, and buying a second home which is going to be future home (first house, which is mortgage free, will be rented), will the second home be considered as Buy to Let? What type of mortgage should this come under?
thank you.

No. It will be a normal residential mortgage. You aren't letting it out.
The fact you have another house you will be letting out is incidental.
You will need to pay the additional 3% SDLT on the new house.


p.s. I'm not a tax expert but if you took out a BTL mortgage on the current house you could then potentially claim income tax relief against the interest, and use the capital to buy all or part of your new residential house.