We own a house outright and we want to buy another house but not remortgage

notsurewhichmortgage

Hi all,
I have a question.
My husband and I own a house outright, we paid it 4 years ago, and we raised a deposit for a second home. We don't want to use the first house, the one we live in as an equity. We want to buy the new house because we need more space so we will be living in the new house. We won't be selling the first house, the outright owned one, we intend to rent it. 
My questions, apparently I have a few questions not jus one 🙈:
1. Could we apply for a residential mortgage for the second home and not a BTL mortgage? We have a good deposit saved and our incomes are good. 
2. If we can apply for a residential mortage, what would be the mininum deposit we need to put down? Although we have a good amount saved, we want to know the price range we are looking at? 
3. On the same topic of price range, would we be able to use the rent on the house we own and will be renting, as another income when we apply for the new mortgage? 
4. Would the mortgage rate be higher because we are second time home buyers even if we don't have another mortgage? 

I hope my questions make sens and I hope they are not too silly 🙈 as well as I hope you will be able to help 🤗

haras_n0sirrah

If you are getting the mortgage on the one you will be living in it would be a residential mortgage
Different lenders have different requirements- some will need a higher deposit if you have another property. At the moment the minimum would be 15%
Speak to a broker. If you dont have one then some of us who post here are independent brokers and are identifiable by our signatures. Read the boards and pm someone who you feel can help you. We are not allowed to approach posters but most of us are happy to respond to pm's asking for help.

KathysBoy

Don’t forget that you will have to pay the second property stamp duty premium of 3%. This still applies during the stamp duty holiday.

notsurewhichmortgage

Thank you Haras, 
Do you think we would be able to find a lender who might cosider the rent on the first house as an income? 🙂

haras_n0sirrah

No as you won't have a track record
Some lenders will ignore the mortgage payment as long as the proposed rent covers it (but not all of them - some you have to have already rented for 3 months before the lender will ignore it)

notsurewhichmortgage

Thank you again, that makes a loy of sens 🤗

dimbo61

Any lender cannot include the Rent you might receive from renting your current home because your currently living in this house.
If you have a 10/15/20% deposit and the Income to support a new mortgage you can of course buy a second property as your new main residence.
However you will still have to pay the extra 3% stamp duty as well as the normal costs associated with buying.
Once you have bought and moved in you can then rent out your old home.
You need to prepare the property for renting !
Gas Safe Certificate,EICR, EPC etc