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Can I take out second mortgage and let my parents live there?

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Jonj123_2
Jonj123_2 Posts: 5 Forumite
in Mortgages & endowments
Hi,

I currently have a residential mortgage on the house I'm living in. Would I be allowed to take out an second residential mortgage on another property and let my parents live in the new property?

Many thanks

Comments

  • pramsay13
    pramsay13 Posts: 2,147 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    For what purpose?

    Will they be your tenants?

    Why can't they get their own mortgage?
  • Jonj123_2
    Jonj123_2 Posts: 5 Forumite
    They won't be paying me rent, I will let them stay there for free. They don't work and haven't got much pension. I have adequate salary to be able to pay two mortgages. I just want to know if there is any legal issues with this or whether this would be allowed.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Jonj123 wrote: »
    Hi,

    I currently have a residential mortgage on the house I'm living in. Would I be allowed to take out an second residential mortgage on another property and let my parents live in the new property?

    Many thanks
    Purchasing a property for dependent relatives is not an issue, but if you will be the owner, you will have the SDLT surcharge to pay.

    You should ensure you fully understand the process if you plan to have them apply for Housing Benefit. Search "contrived tenancy."
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    You wont be breaking any laws if you do not lie on the mortgage application.

    You may struggle getting a residential mortgage for this - speak to a broker.

    Best of luck.
  • Xyzzy
    Xyzzy Posts: 67 Forumite
    Third Anniversary
    You don't need a broker, waste of money. You can get a second home residential mortgage. Go direct rather than pay fees.

    Do bear in mind the stamp duty surcharge; 3% additional on the entire value
    I am a Mortgage Adviser
    ______________________________________
    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. Posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Xyzzy wrote: »
    You don't need a broker, waste of money. You can get a second home residential mortgage. Go direct rather than pay fees.

    And your a broker - I assume you plan on packing up and doing something else?! :rotfl:
  • Xyzzy
    Xyzzy Posts: 67 Forumite
    Third Anniversary
    I'm not a broker.. not sure where you got that from..
    I am a Mortgage Adviser
    ______________________________________
    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. Posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Your signature...?
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • Xyzzy
    Xyzzy Posts: 67 Forumite
    Third Anniversary
    I'm a qualified mortgage advisor, yes.. not all mortgage advisors are brokers..
    I am a Mortgage Adviser
    ______________________________________
    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. Posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Ah, okay.

    So you describe yourself as an "advisor" rather than a "broker"?

    I use broker because that's what I feel best describes what I do...

    Are you based in a lender branch or similar then, based on your earlier comment about paying fees?
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
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