Second mortgage

[JoshGrobansFurryHamster]

Morning

I’ll try to keep this brief - I have a repayment mortgage on a property that cost me £66,000 - I put down 10% and I pay £310 a month off it

All good

IF I wanted to buy another property of a similar amount - say £70,000 - would I need a 25% deposit?

This might not ever even happen. Just need some clarification

I would imagine that you might need to as buy to lets and second homes tend to require higher deposits and attract higher interest rates. You’d also need to pay 3% stamp duty on it.

Some lenders will do a second mortgage on 10%. We've just taken one with Natwest.

It’s all very up in the air atm

My parents want to sell their house and go travelling..good for them; and they want to downsize and they’re eyeing up my house 😂

I don’t know the ins and outs/legal stuff like stamp duty etc; I’ll actually go to a mortgage advisor for that - just wondering as the official Google line seems to be 25%

You need to be wary of capital gains tax if you plan on moving out of and then later selling your first property.

So your parents want to buy your house? Or a similar house? I thought you were buying? Sorry, struggling to follow your post. A mortgage advisor might be able to find a lower deposit deal, like the one Starwhisperer has, but the interest would be different + you still need the income and enough years till retirement to repay the mortgage. There is also a difference between a btl and second home (holiday home) mortgage.

No, they want to move in to my house

But if they move in - l’ll have to move out - they’d cover the mortgage but obviously I’d have to get that drawn up officially I suppose in a rent capacity?

I know nothing about buying houses, mortgages, tax etc I literally found my original house, rang the estate agent who gave me a mortgage advisor - brought in my documents, she helped me with everything so I’m completely unaware if this is even possible

They’re selling their home - lovely four bed and spending the majority of the money on travelling around the world, cars etc and just want to cover my mortgage and rates. They say they will also put a new kitchen into my home and do it up improve it. They’re going part time in work

They’ll be leaving me a substantial amount of money - I’m an only child but we’re all still young so hopefully this won’t be until I’m old. I’m 27 and they’re early 50

If this isn’t viable they’ll not travel to the extent they want and they’ll buy an apartment. We’re in NI. House/apartment prices here are ridiculously low

Sorry for the lack of initial info

You can rent your house to your parents. However, doing it properly is a little complicated. If it’s a normal residential mortgage, you’d need a permission from your bank to rent it or change to a buy-to-let mortgage. You’d need to pay tax on your income - if you work already, there will be tax to pay even if the rent is equivalent to your mortgage payments and you have to pay rent elsewhere for your own accommodation. As a landlord, you’d also have some other responsibilities. So you might want to research the legal side of things as it’s all a bit tricky.