If you already have a residential mortgage IT IS still possible to obtain a 2nd residential mortgage depending on the use of that 2nd property. Acceptable reasons for the 2nd residential property include:
- Marital break up
- Pied à terre
- Holiday home for personal use
- Holiday home for personal use and limited rental
What is the lender looking for?
A mortgage lender is generally looking for affordability more than anything else. Quite simply if your income allows you to afford both mortgages then the lender will be willing to lend you the money for a 2nd residential mortgage.
How does the lender calculate affordability?
All lenders have different affordability calculations for assessing affordability, some lenders still use income multiples to calculate the maximum loan amount available to you.
Ask your mortgage broker to work out the lender’s affordability as they will be familiar with each lender’s criteria and quirks. With a decent and reputable mortgage broker there will be no cost associated with this type of service.
What to avoid
Lenders will look for trends to ensure that you are not ‘playing the system’. For example don’t use a residential mortgage with a view of letting the property out as lenders are wise to this type of mortgage fraud and share information between each other.
What to do next
If you would like assistance on how to structure your existing mortgages – let to buy, consent to let and other variations contact us and one of our dedicated brokers will be happy to assist you today, we’re here to help whatever your circumstances. Fill in our online mortgage enquiry form today and we will be in contact with you.