3rd mortgage query

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  • 3rd mortgage query

    Hi

    I currently have a standard mortgage on a house which i live in. In addition, I have a flat which i formerly lived in and as a "reluctant" landlord kept on when I moved out. I now rent this out to tenants but have been able to keep my old standard (ie not BTL)mortgage on this property with the agreement of the lender.
    I am looking to move out of my house and rent this out. I acknowledge the fact that I need to inform my lender of this and that they may wish to increase the mortgage rate due to the change in circumstances ( I have a lifetime tracker, offset mortgage on my house). I have built up a deposit which I will put down on my third property and presume I will be limited to BTL products only due to the fact that I already have two standard mortgages?
    Obviously my attraction to taking out a third standard mortgage is the lower deposit required and greater variety / lower cost of deals available.
    Any advice welcomed - many thanks

  • #2
    In theory your 3rd mtg could be a standard rate if you are going to live in property, I say in theory as I very much doubt your 2nd lender would consent to this arrangement albeit for anything other than short period of time until market improved. If you do not ask however you do not get.

    Keep us updated on situation.

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    • #3
      Have you considered remortgaging your current home into a BTL and using the equity released to get a home owner mortgage on the property you are looking to buy?

      Perhaps that is what you are planning and I've completely missed the point.

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      • #4
        If the deal you are on is really good and you want to keep it - you could 'probably' port it to the new property. You would then have to get a btl mortgage to replace the loan on the current property.

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        • #5
          Originally posted by Claymore View Post
          If the deal you are on is really good and you want to keep it - you could 'probably' port it to the new property. You would then have to get a btl mortgage to replace the loan on the current property.
          I did this recently... The advantage was that I kept the higher rate of interest on the BTL, which was tax deductible.

          I had no chain and completed the remortgage/purchase in 3/4 weeks max.

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