Mortgage abroad and in the UK?

oatcakes

Hi,

Need some advice. 

Just wondering if someone has been or is in the same boat.

My partner and I are currently in the last stages of buying a property abroad for €180k. Contracts have been exchanged and we’ll be collecting the keys next month.

For now we would just like to keep the house, do some renovation to it and use it for holidays when we travel, which is quite often.

The mortgage is €800 (£700) per month.

I am currently on £53k a year and my partner on £45k a year.
Our joint income is roughly £100k when taking our company bonuses into account.

In December 2024, our UK home mortgage fixed rate comes to an end.
We intend to sell the house and use the money to purchase a new bigger one.

We’re looking at properties in the West Midlands that range from £300,000 to £325,000.
We intend to put down 10% (£30,000 to £32,500 deposit).

We’re aware that we would need to pay the additional stamp duty due to owning an house abroad. 

This is ok, as we already have money saved up for these sort of expenses.

My question is, how likely is it for
us to be approved for this mortgage next year December 2024 whilst also having another mortgage abroad?

We are both 31 years old, no kids, no debt.

housebuyer143

oatcakes said:

Hi,

Need some advice. 

Just wondering if someone has been or is in the same boat.

My partner and I are currently in the last stages of buying a property abroad for €180k. Contracts have been exchanged and we’ll be collecting the keys next month.

For now we would just like to keep the house, do some renovation to it and use it for holidays when we travel, which is quite often.

The mortgage is €800 (£700) per month.

I am currently on £53k a year and my partner on £45k a year.
Our joint income is roughly £100k when taking our company bonuses into account.

In December 2024, our UK home mortgage fixed rate comes to an end.
We intend to sell the house and use the money to purchase a new bigger one.

We’re looking at properties in the West Midlands that range from £300,000 to £325,000.
We intend to put down 10% (£30,000 to £32,500 deposit).

We’re aware that we would need to pay the additional stamp duty due to owning an house abroad. 

This is ok, as we already have money saved up for these sort of expenses.

My question is, how likely is it for
us to be approved for this mortgage next year December 2024 whilst also having another mortgage abroad?

We are both 31 years old, no kids, no debt.

What will happen is they will take the other mortgage off your affordability, depending on the type of mortgage you took it out on. If it's a holiday let mortgage then that is a business and it isn't likely to reduce your affordability. 

You will probably find you can't borrow as much and might but be able to afford your new house.

user1977

As above I would expect it just to be treated in the same way as a similar liability in the UK - I don't see that it being a foreign property changes things (if that is what you were getting at?).