Owner mortgage or buy to let
Discussion
I'm looking at buying a second property for myself and maybe letting it.
Typically if you buy a second home you need a buy-to-let mortgage - high deposit and interest rate.
I currently live in a property with no mortgage so would lenders offer an owner occupier mortgage for me on this second property? Oxymoron there I know but they are referred to as owner occupier mortages!
I'd either be short term letting then living there or some other combo of the two.
Considering there is no additional risk for the lender ie. I pay the mortgage or a tenant does I would hope they would.
I'd like to get some feedback from you 'orrinle lot before I start speaking with lenders.
Thanks chaps!
Btw. I don't want to mortgage the current property.
Typically if you buy a second home you need a buy-to-let mortgage - high deposit and interest rate.
I currently live in a property with no mortgage so would lenders offer an owner occupier mortgage for me on this second property? Oxymoron there I know but they are referred to as owner occupier mortages!
I'd either be short term letting then living there or some other combo of the two.
Considering there is no additional risk for the lender ie. I pay the mortgage or a tenant does I would hope they would.
I'd like to get some feedback from you 'orrinle lot before I start speaking with lenders.
Thanks chaps!
Btw. I don't want to mortgage the current property.
If you are going to Let the second/new property then you either obtain a Buy to Let mortgage, or raise a personal mortgage on your home/present property, which I appreciate you don't want to do. One can raise money/mortgage from one's own home, to purchase a Buy to Let property, and STILL be able obtain/claim tax relief on the interest charged on the mortgage, ie the mortgage does not have to be on the Buy to Let property to enjoy the tax relief.
Thanks chaps.
When it comes to it I shall try to find a lender who will treat it as a first property (it may well end up being just that too). it sounds to me like there should be one - wishful thinking on my part most likely.
I was looking at a comparison site recently and btl deposits required looked to be 40pc and upwards and relatively high rates-hence my question. Generally I do believe this makes sense but of course, not for me
lol. A 20pc deposit and reasonable rate please!
It's a far cry from where we were 6 years ago!!
(I'm always one for honesty and no 'buts' here; I do wonder though how many chaps/chapesses infomed their lenders when they moved out of their property and started to rent it!
Edited for iPhone typos. There may be more...
When it comes to it I shall try to find a lender who will treat it as a first property (it may well end up being just that too). it sounds to me like there should be one - wishful thinking on my part most likely.
I was looking at a comparison site recently and btl deposits required looked to be 40pc and upwards and relatively high rates-hence my question. Generally I do believe this makes sense but of course, not for me
lol. A 20pc deposit and reasonable rate please!It's a far cry from where we were 6 years ago!!
(I'm always one for honesty and no 'buts' here; I do wonder though how many chaps/chapesses infomed their lenders when they moved out of their property and started to rent it!
Edited for iPhone typos
. There may be more... Edited by 911DM on Wednesday 12th August 23:37
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