Mortgage question.

[Number 5]

In the next year or two i would like to move house but i would like to keep my existing property, i am currently paying three times my mortgage monthly payment so hopefully the bank could see that i could pay both mortgages. Would a lender be happy to provide me with another mortgage and keep my existing mortgage running based on the fact my property is self sufficient as it would easily rent for the less than the mortgage monthly payment, if so could i just run a standard mortgage on my new property or would i have place one of them on a buy to let mortgage?

[robsti]

I think you have to tell them you are renting it and then they add a percentage to the interest rate!

[Number 5]

I would tell them that i'm renting one, what do you think the added percentage would be?

[robsti]

Number 5 said:

I would tell them that i'm renting one, what do you think the added percentage would be?

I think it used to be 1%.

[Number 5]

Cheers for that, how difficult is it obtain mortgages these days and what sort of deposit would i need, have you any idea?

[robsti]

Number 5 said:

Cheers for that, how difficult is it obtain mortgages these days and what sort of deposit would i need, have you any idea?

The bigger the dposit the easier it wil be!

[seaninog]

robsti said:

Number 5 said:

I would tell them that i'm renting one, what do you think the added percentage would be?

I think it used to be 1%.

I'm afraid \"used to be" is the operative phrase.

I'm in a similar situation and need both a residential and But-To-Let mortgage. The residential is relatively competitively (I've gone for an Offset at 2.39% over Base rates) priced but there are so fe BTL mortgages out there that it's a bit of a cartel (according to my IFA) so the best I can get is 4.75% fixed.

Needless to say both mortgages coming with whacking great fees (£1,500 and £999 respectively) and I have to cover my own legals etc.

"used to be"....

[Number 5]

Cheers Rob much appreciated.

[Number 5]

seaninog said:

robsti said:

Number 5 said:

I would tell them that i'm renting one, what do you think the added percentage would be?

I think it used to be 1%.

I'm afraid \"used to be" is the operative phrase.

I'm in a similar situation and need both a residential and But-To-Let mortgage. The residential is relatively competitively (I've gone for an Offset at 2.39% over Base rates) priced but there are so fe BTL mortgages out there that it's a bit of a cartel (according to my IFA) so the best I can get is 4.75% fixed.

Needless to say both mortgages coming with whacking great fees (£1,500 and £999 respectively) and I have to cover my own legals etc.

"used to be"....

Interesting, are both properties going to be on full repayment options?

[Welshbeef]

I was in this scenario - and always have been as when I buy property I stay in them for a handfull of years then buy another but change them to rental property.

In every case I have requested "Permission to let" from the residential mortgage provider. The cost is £195 admin fee and the same rates apply - currently this being the SVR so notably cheaper than any Buy to let + of course saving the huge set up fee.

Not many people know about this - and when I have called the banks nearly every time they have said you need a buy to let (basic mortgage advisors) but when you request permission to let not buy to let its totally different. I guess the basic mortgage advisors see so few they dont know the process.

Not all will offer this though but well worth asking, once done you know where you stand. Note you cannot let your property with out a buy to let OR a permission to let authority as its breaking the T&C your contract with the mortgage provider and they could call in that loan instantly then your really up the Kyber with no paddles & straddles with a massive APR bridging loan until a replacement mortgage is found.

Too many people dont do this properly and they really should be punished as it is not fair on the Banks.

[scotal]

Number 5 said:

In the next year or two i would like to move house but i would like to keep my existing property, i am currently paying three times my mortgage monthly payment so hopefully the bank could see that i could pay both mortgages. Would a lender be happy to provide me with another mortgage and keep my existing mortgage running based on the fact my property is self sufficient as it would easily rent for the less than the mortgage monthly payment, if so could i just run a standard mortgage on my new property or would i have place one of them on a buy to let mortgage?

You need to know whether your current mortgage provider will give permission to let.
Not all will. Those that do might leave you on your current rate, or they might charge you a extra rate. Most will charge a fee, and that fee will differ from lender to lender. THose polices are oft updated at the moment, especially if you have a high LTV on the property you want to let.

IF you can prove affordability by your lenders calculator, then most lenders will allow you to run both mortgages simulteaneously.

[scotal]

Number 5 said:

I would tell them that i'm renting one, what do you think the added percentage would be?

Entirely lender dependent.

[Number 5]

Welshbeef said:

I was in this scenario - and always have been as when I buy property I stay in them for a handfull of years then buy another but change them to rental property.

In every case I have requested "Permission to let" from the residential mortgage provider. The cost is £195 admin fee and the same rates apply - currently this being the SVR so notably cheaper than any Buy to let + of course saving the huge set up fee.

Not many people know about this - and when I have called the banks nearly every time they have said you need a buy to let (basic mortgage advisors) but when you request permission to let not buy to let its totally different. I guess the basic mortgage advisors see so few they dont know the process.

Not all will offer this though but well worth asking, once done you know where you stand. Note you cannot let your property with out a buy to let OR a permission to let authority as its breaking the T&C your contract with the mortgage provider and they could call in that loan instantly then your really up the Kyber with no paddles & straddles with a massive APR bridging loan until a replacement mortgage is found.

Too many people dont do this properly and they really should be punished as it is not fair on the Banks.

Useful post, i'm going to try and go down this route. Thank you

[Number 5]

scotal said:

IF you can prove affordability by your lenders calculator, then most lenders will allow you to run both mortgages simulteaneously.

Cheers for that, the affordability from a lenders view should hopefully look prosperous as i'm currently over paying. I'm paying my standard monthly plus an extra £**** which is the figure that i've calculated using the Halifax mortgage calculator that would be the standard monthly payment on the new mortgage, this way the lender should be able to see that i'm in position to afford both mortgages as i can prove this by already making both payments.

[Welshbeef]

Number 5 said:

scotal said:

IF you can prove affordability by your lenders calculator, then most lenders will allow you to run both mortgages simulteaneously.

Cheers for that, the affordability from a lenders view should hopefully look prosperous as i'm currently over paying. I'm paying my standard monthly plus an extra £**** which is the figure that i've calculated using the Halifax mortgage calculator that would be the standard monthly payment on the new mortgage, this way the lender should be able to see that i'm in position to afford both mortgages as i can prove this by already making both payments.

they may then again they may not. I always like to look at the worst case and what then clearly if the good news works that's fine but you need a plan B.

[scotal]

Number 5 said:

scotal said:

IF you can prove affordability by your lenders calculator, then most lenders will allow you to run both mortgages simulteaneously.

Cheers for that, the affordability from a lenders view should hopefully look prosperous as i'm currently over paying. I'm paying my standard monthly plus an extra £**** which is the figure that i've calculated using the Halifax mortgage calculator that would be the standard monthly payment on the new mortgage, this way the lender should be able to see that i'm in position to afford both mortgages as i can prove this by already making both payments.

Affordabiltiy is done by their formula, not what you are acutally paying.
If you want to borrow a total of £400k, and the lender reckons you can afford £350k, then whether you are making sufficient payments to cover a £400k debt already will be neither here nor there.

I know that sounds non-sensical. That's mortgage lending for you in the current climate.
(I suspect you'll be fine, but you'll need to pick your lender with care.)