Second Home Mortgages

lulu41_2

Are these any different to main residence mortgages? Anyone know any best buys for the like ?

Thanks

homer_j_3

Are you talking about an investment property- buy to let or are you on about a summer home etc?

lulu41_2

I own a flat and my partner owns the proeprty that we live in as our family home. We originally were going to let the property out but over time it has become a getaway for both of us. So not a summer home or a buy to let.

Any advice would be great - thanks

homer_j_3

Ok, no problems.

Some lenders are comfortable with 2nd homes and some are not and if it was a buy to let then it is a different story. As it is a 2nd home, its just looked upon like a normal mortgage would be for affordability etc.

Depending on income, credit status,current debts and expenditure, current mortgage balances and values of the property will all determine who is the most appropriate lender for you.

In addition to this, the flat and construction types of both properties have to meet the lenders requirements too.

I would recommend either posting your details on here so we can tell you if it looks feasible or going to see a professional adviser who will be able to get all the information that is needed.

Hope that helps.

lulu41_2

Thanks Homer that is a big help. One question you say construction of both properties only looking to remortgage my property not family home ?

homer_j_3

All I meant, which I should have maybe explained further is that with flats, some are acceptable some are not - what floor its on can affect the lenders decision, whether it has lifts or not can, is it ex local authority or is it freehold rather than lease hold?

With the family home, if its ex local authority, it may be an issue, if its not standard brick/stone construction some lenders will be less favourable.

My point was to say that is that the property types can be equally as important as the applicants themselves.

lulu41_2

Ok thanks very much - my flat is ex local authority on the second floor - originaly did not have a problem finding a mortgage but suppose things have changed a bit

rdsmortgageman

You should also note that some lenders have LTV restrictions on second homes.

Conrad

Be mindfull of proof of residency. If you are saying the place you wish to mortgage is your residence a lender may well expect up to date utility bills with only that address on (not a forwarding address).

There may also be a test made into feasability in terms of the location of your work compared with the location of your second residence.

You then need to ensure your insurance is valid and that your lender accepts the insurance contract. Usually you have to insure on the grounds you inhabit the property as empty properties are more likely to be vandalised for example.

Just some considerations......

homer_j_3

2nd floor shouldn't be too bad but there are a lot of considerations that need to be considered.

I would seek professional advice if you want to stand the best chance of getting the right solution for whatever you are wanting to do.

Just to add as Conrad has posted that this is something that is being looked into a lot so it is imperative that you choose a lender that is happy with this scenario. I did one where the 2nd house was 5 miles apart and they used the 2nd home for family visiting (was in lake district area) and the lender was happy providing that the insurance covered the property for long periods of being empty. Do not try and bend the truth about what you are doing.

lulu41_2

The property is valued at £165,000 and I woud be borrowing in the regoin of £100,000 - would that be OK?