A second residential mortgage is probably more common than you might first think. There are many reasons why you might want more than one property. You may be investing in a second family home, a holiday let, or a buy to let mortgage. In short, as long as you fit all the necessary criteria, you can have as many mortgages as you want.
Second Residential Mortgage : Not all Lenders are the Same
If you have been declined a second residential mortgage from one lender, Mortgage Style may be able to help. Not all lenders are the same. Being declined a mortgage does not mean you have to write off the idea of owner multiple properties. Help is at hand to ensure that not only you secure the second residential mortgage you need, but that you get the very best mortgage rates.
Here at Mortgage Style we are independent mortgage specialists. This means we can tailor your mortgage solution to meet your needs. We provide you with impartial advice. Firstly, it is important that you decide what type of mortgage you want or need. Not all lenders will allow a mortgage for a property for a relative to live in. Many will restrict the number of properties in your portfolio you can apply for lending for.
In the case of a buy to let, it is important to assess whether the mortgage will be self-sufficient or not. This means whether or not the entire rental will be covered by the mortgage. A self-sufficient mortgage is usually classed as one that will cover between 100 and 150% of the rent. Your credit will also be assessed, as will the level or risk. Sometimes, a lender will not accept a mortgage where they already own multiple mortgages in the same street or block of flats.
The legality of your second residential mortgage will also be assessed. Unfortunately, many unscrupulous individuals will apply for a mortgage, giving false information in a bid for the application to be accepted. Some people will try to take out a buy to let mortgage on a home they intend to live in. Others will take out a standard residential mortgage and turn the property into a HMO the next day.
Second Residential Mortgage : Extra Criteria
When applying for a second mortgage for a residential property, you should therefore expect for more criteria to be met. This is standard practice, and it is not personal, nor designed to make your application difficult.
When applying for a second mortgage, expect to be assessed more stringently than for your first mortgage. If you already have a mortgage and are struggling to meet the repayments, then it is unlikely you will be easily accepted by a second lender. Before you decide to buy a second residential property, make sure you can afford it, and are willing to commit to all the years of repayments that lie ahead.
More Help and Information from Property Style
If you are thinking of taking out a second mortgage , Mortgage Style can offer you impartial advice and the most competitive rates on borrowing. We cover Bristol, Exeter, Plymouth, and the surrounding areas and specialise in the buy-to-let market. For more information and advice, give us a call on 01275 370360 or 0117 907 0818 or fill out a contact form to discuss your individual requirements.
Tags: Second Residential Mortgage
Categorised in: Mortgage Advice
This post was written by Marcus Robinson