Buying second property and moving in

premiumz

Hi,
We are looking to up size and buy a second house. We would like to keep our current house and rent it out.
My questions is: Usually if you're looking to buy the house you're going to live in you can put less money down as a deposit. If the house is a BTL you need to put down 20%+.
Would this increased deposit size still apply here as we would be moving into our new house? Or would we be able to put down 10%?
Thanks

heston2014

We’re in the process of purchasing a second home and keeping our first one. I think most of the lenders have a criteria of “second home as a holiday home” and not to live in as main home or for a dependant for example. I had a look at a couple based on our deposit, Leeds BS apparently may accept 15% deposit if based on income only, whilst HSBC asks for 20% minimum deposit and based solely on income. It seems that there are limited number of lenders that are ok with second home to live in or for a dependant but maximum they would lend would be between 80-85% based on income/affordability. We went with HSBC and applied directly via the “no advice” route and currently awaiting to hear back. No guarantee we will get accepted, albeit affordability stacks up even without any rental income on first property. I’m guessing, the higher the deposit, the lower the borrowing and better rates but not all lenders of course.

And there’s the additional stamp duty to consider too on top of deposit and other fees.

NatalieAGC

Second home such as home to maintain and upkeep is different to owning another property and letting out. 

So having 2 properties you keep will eat into your affordability. 

Having one property which is self financing ( usually 145% more than mortgage payment) will be classed as self financing once tenanted and you have consent to let form your lender. 

For example I own a house with consent to let and I have a hard DIP with virgin money who will class it as self financing if I proceed.  15% deposit and this varies dep on lender and their criteria 

you will be looking at 15/20 % deposit. I doubt you will get 10% deposit in current conditions - HSBC and YBS seem to have them I think but you need check what deposit they need if you own another house 

Thrugelmir

In the current environment there'll be close scrutiny of affordability.  The hard financial numbers and your personal circumstances will have a bearing on what options are available. Run it past a mortgage broker if in doubt.