2nd mortgage

chloeH95

Looking to get a second house with my partner as a family member is currently living with me in my first home! Has anyone been able to get a second mortgage without needing a 25% deposit? 

[Deleted User]

yes. loads of people.  how much deposit do you want to put down?  15% is probably realistic at the moment.   I dont think any of the 10% lenders allow 2nd homes without a bigger deposit.  

Thrugelmir

Is your current property going to be let to the family member? 

chloeH95

No I will still be paying the remaining mortgage on it 

chloeH95

Deleted_User said:

yes. loads of people.  how much deposit do you want to put down?  15% is probably realistic at the moment.   I dont think any of the 10% lenders allow 2nd homes without a bigger deposit.  

I’d have 15 - 20%. Are there anyone you could recommend? 

K_S

Most resi lenders you come across will lend on 2nd homes. The criteria, how they assess affordability, plausibility, max LTV, etc will differ across lenders.

longtimelurker2020

Deleted_User said:

yes. loads of people.  how much deposit do you want to put down?  15% is probably realistic at the moment.   I dont think any of the 10% lenders allow 2nd homes without a bigger deposit.  

Why do the lenders require a larger deposit for a second home; what’s the rationale, and does this also apply even when the first property is mortgage-free? 

[Deleted User]

longtimelurker2020 said:

Deleted_User said:

yes. loads of people.  how much deposit do you want to put down?  15% is probably realistic at the moment.   I dont think any of the 10% lenders allow 2nd homes without a bigger deposit.  

Why do the lenders require a larger deposit for a second home; what’s the rationale, and does this also apply even when the first property is mortgage-free? 

One of the reasonas will be to reduce the risk of someone who has a smaller deposit and good income from buying a 2nd home and then renting it out as a buy to let.  If you needed 25% deposit for a buy to let but only 5% or 10% on a 2nd home then certain clients might decide to claim they are buying a 2nd property and just stick some tenants in it.   

longtimelurker2020

Deleted_User said:

longtimelurker2020 said:

Deleted_User said:

yes. loads of people.  how much deposit do you want to put down?  15% is probably realistic at the moment.   I dont think any of the 10% lenders allow 2nd homes without a bigger deposit.  

Why do the lenders require a larger deposit for a second home; what’s the rationale, and does this also apply even when the first property is mortgage-free? 

One of the reasonas will be to reduce the risk of someone who has a smaller deposit and good income from buying a 2nd home and then renting it out as a buy to let.  If you needed 25% deposit for a buy to let but only 5% or 10% on a 2nd home then certain clients might decide to claim they are buying a 2nd property and just stick some tenants in it.   

I see...so many are paying for what a few might do...makes sense though.

I’d always thought it was in support of government policy to discourage the accumulation of property, freeing up housing stock for other purchasers. 

cjp2k

I've just received my mortgage offer for a second property that a family member will live in, its a residential mortgage but I have 25 percent to put down, don't forget the stamp duty you will need to pay as well,