I was not aware of that in the beginning. We do not want to rent the
house as we have put it up for sale already. I have told the IFA we
didn’t need the capital from the sale of the current house as we already
have a deposit for this new one and don’t want to be part of a chain.
The IFA says we can’t have two residential properties, so how do people
have second homes?
Also, the mortgage is only in my partner’s name so can I start the
process again using just my name and turn down this mortgage offer?
The IFA says that my credit rating will be affected if I apply too many
times for a mortgage. But I reject the offer so does that still count?
Regards,
Helen
A:From Paul Welch, managing director, Largemortgageloans.com
Dear Helen
I note that you say ‘The adviser has applied on our behalf and a new mortgage has been accepted on the condition that we change our current home to a buy-to-let mortgage.’ The fact that that the lender is requiring you to refinance your current property on a buy to let basis suggests that your IFA has told them that you are planning to rent it out. Your IFA may have done this so that the new lender disregards your current mortgage debt when considering the mortgage loan on the new property.
Most lenders will allow two residential mortgages provided that the applicant is not intending to let either out – but only if they can prove sufficient income to support both mortgages. If you can afford to do this, it would be the preferred route for you based on the information supplied, however as you can appreciate I am not aware of all your circumstances.
You also say that ‘the mortgage is only in my partner’s name so can I start the process again using just my name and turn down this mortgage offer?’ The answer is that you can turn the offer down and start the process again, although whether this is the right course of action for you will again depend on your circumstances . Your IFA is correct that your credit rating might be affected by multiple mortgage applications.
All residential mortgages are regulated by the FSA and they have just launched a new website here if things go wrong.
However initially I would suggest having a conversation with the IFA and making them aware of your concerns and questions before taking this any further.
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