Advice please on 2nd mortgage

irish_eyes_3

Hi!

Can anyone offer some advice as to what are my possibilities?

We (couple) wish to move home but rent out our current home while we move to the new house.

What would people generally do in this situation:

1) Change current mortgage to BTL and take out a second homeowners mortgage for new property?
2) Just take out 2nd mortgage for new home and rent out current home but don't tell mortgage company about renting it out. (assuming they will want u to get a BTL mortgage if they know?)
3) Put current home into just one of our names and the second person goes on the new mortgage alone.


The above options are the only ones i can think of, Are there any more?
No 2 would be the cheaper option I guess.

badrol

I wouldnt risk nr 2. As far as I am concerned, one phone call to the lender authorised letting the property for 3 years on the normal mortgage rate (as we moved abroad for some time), and after the 3 years, they extended it for another 3 years.
I hope this helps

UK007BullDog

irish_eyes wrote: »

Hi!

1) Change current mortgage to BTL and take out a second homeowners mortgage for new property?
2) Just take out 2nd mortgage for new home and rent out current home but don't tell mortgage company about renting it out. (assuming they will want u to get a BTL mortgage if they know?)
3) Put current home into just one of our names and the second person goes on the new mortgage alone.


The above options are the only ones i can think of, Are there any more?
No 2 would be the cheaper option I guess.

This is what you need to do:

Change your mortgage into a BTL by telling your lender and paying a fee to do so. You then get a new residential mortgage on your new property.

The minute you apply for a new mortgage the lender can see you already have a mortgage, so will insist on changing it to a BTL before giving you a residential mortgage.

Option 3 incurs (high) costs with the lender to change deeds. And this will only work if both ouf you earn enough on your own to support the respective mortgage: So give some figures and your incomes and any other debts.