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Second home deposit
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You need to pay 3% extra in England and 4% in Wales for a second home.tracytown said:
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.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 ?.
You don't really need to mention it on the online calculator, just press purchase.
They might take some affordability off you though for the running costs of the other house when you actually apply. You will need to mention it at some stage.1 -
I got a mortgage offer with NatWest via a broker a few weeks ago. I couldn't sell my (still mortgaged, 75% LTV) flat so am going to let it and buy a house which will then be a second property. I've got a 10% deposit for my new house and all NatWest wanted was an estate agent valuation to show that the rent when my existing property lets will cover my mortgage. Since it does then they don't consider it an expense for affordability purposes. Your flat isn't mortgaged so you might not even have to do that. You might have to if you want to use the rental income to increase the amount you can borrow though. The broker had said that NatWest was one of the better ones for affordability with a 90% LTV.1
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I'm confused why you're only using Halifax as an option?
Why not go to either an in-person mortgage advisor or an online one (Personally, we used Habito after LandC were absolutely terrible).
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