Mortgages

[bazzap8389]

I'm wondering if anyone can tell me: is it possible to buy a house and in about 2 years after that buy another house whilst still paying the first mortgage aswell? I've been offered my parents house "cheap" and in about 2 years time I want to buy another one which I will then be living in but I won't be renting out my parents one. Hope that makes sense, is it possible?


cheers

[SRimon]

Not that easily.

some mortgage companies will use equity in another property as down payment on a new house but the deeds of that house would need to be then on both mortgages.

This day in age I bet you'll need at least 30% equity to do that. Plus transferring one mortgage to buy to let.

[ASH GSI]

yes its possible, I plan to do it myself in the future. will be putting a deposit on the 2nd house to keep things a bit safer if things go wrong and also helping to keep the total debt down

[bazzap8389]

Ah I see, that gives me 2 years or so to save for the second deposit then. Why would I need I switch it to buy to let? I'm not planning on letting it. I'm planning on letting my parents stay there. Looks like the nova could be going on hold ...

[Stuart]

Ah I see, that gives me 2 years or so to save for the second deposit then. Why would I need I switch it to buy to let? I'm not planning on letting it. I'm planning on letting my parents stay there. Looks like the nova could be going on hold ...

You will be needing to look at the tax implications of that for CGT and possible inheritance tax issues. You will have to charge market rate rent otherwise it will look as dodgy as it sounds lol

[marc69]

Having a second mortgage is no bother assuming you have enough income to support both. Mortagges are worked out on your salary and unless yours is seriously big enough for two mortgages....then you need to prove you can pay a second one. If you could "prove" the people living in the house you don't live in will be paying rent that covers the price of the mortgage you might get away with it. Although I am sure your parents would help you out if you did struggle, a bank etc will not consider ity, has to be hard figures. Do some as to what your own mortgage limits are as things stand first before you mention (pretending) renting out one of the houses.

[dgbnova#1]

It's complex to have 2 property's like that plus you will get slammed for Capitol gains as when you sell one you will pay high tax on it don't see why you would need to rent it back to them though just have all bills in your name it's just your other house then that they live in I think

[bazzap8389]

Right here's my situation lol I live with my mum and it's a council house but my mum won't be buying the house, I want to buy it as a future investment because I can get x amount off the market price. I then want to buy my own house with my gf about 2 years after I've bought that so it gives me time to get more cash saved.

I put past x amount into an isa account and the money i put in there combined with what I give my mum for digs every month will pay that mortgage. Then working out what I have after that combined with what my gf will be making I'm sure we will easy manage to pay for another house it's just a question of whether or not the bank would allow this? And as stated I won't be renting out my mums (my) house she will be living there, i wouldn't want to kick her out. It's either I buy it or no one will I just think it's a good opportunity for an investment.

also I have no interest in selling the house, my plan is to rent it out one day when my mum moves out etc

[Mieran]

Buy your mams house and tell you GF to move in, problem solved lol

[Connor]

Cant you just give your parents the money to buy it and then they live in it there name, and then when the time (once the 2nd deposit have been saved) buy the 2nd house and then inherit the house 'your mum bought'. lol none of that makes sence, it made sence in my head a minute ago lol

[wwmnw]

A friend of mine has 4 houses that he rents out, dunno how he does it but it must be possible.

[Jack]

Not every lender will go for a second mortgage (you can only have one 'main residence' mortgage), those who do usually require a sizeable deposit as they will want to minimize any potential negative equity should you default on payments. But its certainly doable, if the lender believes you can afford it.

Also need to be careful as any payments your parents give you could be considered rent, so the property becomes a let rather than second residence. Which has mortgage implications!

[Chay84]

Cant you just give your parents the money to buy it and then they live in it there name, and then when the time (once the 2nd deposit have been saved) buy the 2nd house and then inherit the house 'your mum bought'. lol none of that makes sence, it made sence in my head a minute ago lol

Not as easy as that if your parents ever go into care the house is forced to be sold by government and money's used to pay for care home at a stupid rate of thousands a month, was going to happen to my grans house

[bazzap8389]

I know what your saying Connor but I've heard stories similar to what chay has said so it's put me off that idea haha

I didn't realise that jack, if I buy my mums house on a buy to let mortgage id be able to buy another one no bother then would I? Think I'll have a word with a financial adviser or mortgage adviser this week.

[ocdstigy]

rich boy lol

[bazzap8389]

rich boy lol

I wish!! It's just a thought at the minute.

did you get a nova for a bday present then?

[w88rdy]

Buy your mums as a buy to let, use the board money to pay it but give it to her to pay, she is then your tenant and so that buy to let mortgage can and will prove to cover itself, then you can go for a personal mortgage in you and your girlfriends name no bother. As long as the buy to let pays for itself and a bit extra for if something happens to the property, ie maintenance etc that will satisfy the bank and allow you and your girlfriends salarys to buy a separate house if that makes sence?

[rob89]

Just throw all your money into the nova ;)

[bazzap8389]

Yeah makes sense Paul :)

Dunno about that rob lol it's potentially going on hold when I've finished off the body...