Second home deposit

tracytown

I'm considering renting out my current flat (no mortgage) and getting a mortgage on a home, but when I try say halifax mortgage calculator it requires a 25% deposit at minimum. I also self employed (but sole trader so wages apparent) does anyone know if I get a mortgage broker I will be able to get a 10-15% mortgage? Or is the 25% a strange required if you own two homes?

Chris_English

You do have the option of mortgaging your current home to get the deposit for the new one.

Snookie12cat

tracytown said:

I'm considering renting out my current flat (no mortgage) and getting a mortgage on a home, but when I try say halifax mortgage calculator it requires a 25% deposit at minimum. I also self employed (but sole trader so wages apparent) does anyone know if I get a mortgage broker I will be able to get a 10-15% mortgage? Or is the 25% a strange required if you own two homes?

Have you tried a different lender? There is no min LTV for owning 2 homes. 

TheMilkmansDad

25%? Is it a buy to let mortgage?

steampowered

Minimum 25% deposit is required for buy-to-let mortgages.

Snookie12cat

steampowered said:

Minimum 25% deposit is required for buy-to-let mortgages.

No it's not. Loads of lenders do 85% on BTL.

TheMilkmansDad

as it with the Halifax here is one of the requirements:

• you have at least 25% of the price of the property as a deposit;

p00hsticks

steampowered said:

Minimum 25% deposit is required for buy-to-let mortgages.

Perhaps I'm wrong, but I didn't read the OP as it being a BTL mortgage they're after - they're intending to let out their existing (mortgage free) main residence, and are looking for a new residential mortgage in order to buy a new property to live in.

It may be that the OP is (incorrectly?) completing the Halifax mortage calculator in such a way that it thinks they are after a BTL (or LTB) mortgage - perhaps ther is no need to indicate that there is an existing property in the equation at all ?.

TheMilkmansDad

OP needs to come back. My guess is they've mistakenly applied for a Buy 2 Let mortgage in error rather than a Residential Mortgage.

tracytown

Thanks everyone. Basically if you use the Halifax mortgage calculator and choose "buy another property" it does not ask about mortgage details and goes right to "you need 25% deposit" I know it's only a guide but it's not clear if it is assuming what.

Yes I was looking to lent out my current flat but buy a new home with a mortgage and use deposit money I have saved. 

tracytown

p00hsticks said:

steampowered said:

Minimum 25% deposit is required for buy-to-let mortgages.

Perhaps I'm wrong, but I didn't read the OP as it being a BTL mortgage they're after - they're intending to let out their existing (mortgage free) main residence, and are looking for a new residential mortgage in order to buy a new property to live in.

It may be that the OP is (incorrectly?) completing the Halifax mortage calculator in such a way that it thinks they are after a BTL (or LTB) mortgage - perhaps ther is no need to indicate that there is an existing property in the equation at all ?.

I see, so don't even mention it to the bank or anything? I think I need to pay more stamp duty though etc. It's a bit confusing but I guess the online calculators are assuming things wrongly.