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Can I Have 2 Mortgages? | Mortgage Advice In Grimsby

Second Mortgage Advice in Grimsby

Most people don’t even think about having a second mortgage, one stresses them out, never mind two! Having more than one mortgage can prove quite costly it certain cases. Surprisingly, with that said, they are a lot more common than you would’ve thought. Here are some reasons why people may want to invest in more than one mortgage:

Common reasons for wanting 2 mortgages:

  1. Do you want a second mortgage to raise money for your existing home?
  2. Are you looking to rent out your existing home and purchase a new one?
  3. Are you looking to help your children out with a second mortgage?
  4. Do you require a second mortgage to purchase a Buy to Let property?
  5. Is your name on an existing mortgage and you are looking to buy a new property?

Second mortgage to raise money

Sometimes, people who have built up equity in their home may start looking for a second mortgage and this is because they want to release some of their equity to fund another purchase or something else.

If this is the same situation that you are in and you are thinking about releasing equity for a second mortgage, then you are going to need another mortgage deal to transfer onto. You can either search round for your own deal or go to a Mortgage Broker in Grimsby and they will sort it for you.

As a trusted Mortgage Broker in Grimsby, we have over 38 different lenders on panel, each with unique mortgage deals. We can shop around for you, searching through thousands of different deals until we match the perfect one for you and your personal and financial circumstances. Remember that lenders do not reward loyalty and will probably be offering better deals to First Time Buyers in Grimsby over you!

Second Mortgage to rent out existing home to purchase a new one

This is called Let to Buy, you have probably heard of it. Sometimes people want to keep their existing property and the mortgage so when the move home, they keep it with the aim to rent it out. When you are Moving Home and you decide to go down the Let to Buy route, your second mortgage will become your new residential one.

Second mortgage to purchase a home for your children

More and more First Time Buyers are struggling to take that first step onto the property ladder without a helping hand. We are commonly seeing more and more Parents and Grandparents helping out. The most common situations that we see is that either the Parents or Grandparents of the applicant give up their home and move out to get a second mortgage or they actually purchase the second home for them (kind of like a gifted deposit).

Second mortgage for a Buy to Let

Are you interested in purchasing a second mortgage for a Buy to Let in Grimsby? If so, you should speak to a Buy to Let Mortgage Advisor in Grimby at Grimsbymoneyman. We have helped hundreds of local Buy to Let landlords secure amazing mortgage deals in the past and we want you to be next.

Get in touch and let’s get the process started for you and your Buy to Let second mortgage in Grimsby.

Named on an existing mortgage and want to buy a new home?

Are you currently named on another mortgage and would like to purchase a new property to live in? This situation is very common, and unfortunately, it is likely due to a divorce or separation. In situations like this, 9 times out of 10 we are able to help. Having a Specialist Mortgage Advisor in Grimsby by your side during this tough time could really help take all of the stress off your back.

We are able to search through thousands of second mortgage deals for you and we will work endlessly until we have that 1/1000 perfect deal for you. Receive a free mortgage consultation off one our amazing mortgage advisors today at Grimsbymoneyman, your local Mortgage Broker in Grimsby.

Mortgage Advice in Grimsby

Porting a Mortgage to a New Property

Mortgage Advice in Grimsby

You may not be aware but most mortgages are portable these days. This portability means that when you are Moving Home, you can transfer your mortgage from one home to the next without a penalty. This is great if you have previously secured a fixed rate deal that you are still in the middle of and decide you want to move and take it with you.

Not all mortgages are portable, you should check with your lender or Mortgage Broker in Grimsby before putting your house on the market. If you have had your mortgage for some time or if it is with a specialist lender there is a chance it might not be portable, so bear this in mind when arranging your mortgage.

Sometimes, we find that customers don’t consider the porting options available to them. There are several potential reasons for this. Maybe the new lender will not lend them the extra money they need to fulfil the move. When you port a mortgage, you can only port the amount you currently owe and any additional borrowing needs to be placed on a deal from the lenders’ current range and that might not be competitive.

Extra borrowing?

If you do port a mortgage and borrow extra monies, the additional borrowing creates something called a “sub-account”. In other words, you have one mortgage but with two different rates of interest applying to it, and it may not be as good as the rate you already have.

This can be a real pain because almost certainly the two products will “overlap” each other and as such it’s difficult to get these to line up without having to let one drift onto the standard variable rate for a while. Customers tend not to like having to change their mortgage deals as often as this and some of them decide to take the “hit” and pay an early repayment penalty to swap lender and get it all lined up.

Like any mortgage application, you will have to check to see if you are eligible to borrow more money if this is what you are looking for. Porting a mortgage can sometimes be difficult and may require Specialist Mortgage Advice from a professional who has lots of valuable experience in Moving Homes.

As a local mortgage broker in Grimsby, we offer expert advice regarding porting mortgages, so if you are struggling or need any type of mortgage advice, get in touch with our fabulous team.

Buying as a Sitting Tenant

Mortgage Advice in Grimsby

We often receive calls from tenants informing us that their landlords are looking to put their property on the market, however, would like to offer the tenant the opportunity to buy the property first.

If the tenant is eligible for a mortgage and is in a position to purchase the property, this is usually the best outcome for both landlord and tenant. As if the tenant works close by or has children in the local school, moving would be an upheaval, to say the least. From the landlord’s perspective, it will save them time and money with selling fees.

Why is my landlord Selling their investment property?

Some tax reliefs were previously set in place by the government which helped landlords but due to changing times, these have been rolled back by the government. It is because of this that landlords are having to pay more tax meaning they are having no other option but to offload their investment property.

Whether the property is sold is to the landlords’ discretion. Some, such as serious investors, see it as a long-term arrangement seeing it as a sound investment from which they could benefit, whilst on the other hand, amateur Landlords will normally choose to sell.

How does it benefit landlords to sell to their current tenants?

There are many reasons why landlords would prefer to sell their property to the tenant rather than list it on the open market.

  • Your landlord would save money on estate agency fees.
  • During the sale process, the landlord may be out of pocket due to the lack of rental income. As if the property is on the market for a prolonged period of time and the sale takes months to go through, this is a time where the tenant would have still been paying their rent.
  • No refurbishment is needed again this saves time and money. If a tenant moves out then the Landlord would usually have to refurbish the property i.e. decorating, new flooring. In order to make it appealing to new potential buyers

But there are advantages on both sides, such as to the tenant who is considering buying:

  1. You’re in store for no nasty surprises because you already know the ins and outs of the property.
  2. You are not in a property chain as you’ll be buying directly from your Landlord so there’ll be no waiting around. This is more time effective because it means the deal will be done much quicker.

The advantages above means you’re able to obtain the property at a discounted purchase price. This is a popular route to sell for landlords and can sometimes be referred to as ‘Sale under Value’.

Some Lenders will allow any discount the Landlord is offering to you as part/all of your deposit. If the agreed price turns out to be well below the open market value it may even lead to the providential situation of tenants not having to put down any deposit at all.

We come across this enquiry quite frequently. In this scenario, you are more than likely a first time buyer in Grimsby and have lots of questions to ask. Our Mortgage Advisors really enjoy helping our customers every step of the way and putting your mind at ease throughout the whole process. Please contact us to discuss your mortgage options, we’d love to help you achieve your mortgage goals.

Learn More About Property Surveys

What is a property survey?

When customers like first time buyers in Grimsby have an offer accepted on a property your next job is to arrange a property survey.  This will establish the condition of the property and ensure that it is worth what you are going to pay for it. If something is found on the survey you are then in a position by law to approach the seller to negotiate a price for the works required.

Choosing the right survey

Here’s a short video from the Royal Institution of Chartered Surveyors (RICS) that explains the different types available to you.

Property survey types

There are 3 main types of property survey available to you:

  1. Mortgage Valuation
  2. Homebuyer’s Report
  3. Full Structural Survey

Mortgage valuation

A basic valuation is the cheapest option and you will be required to have one of these before you receive your mortgage offer.  Please don’t confuse this with a full survey.  The mortgage valuation confirms to the lender that the property is worth at least what it is lending you.

Your mortgage lender may even offer you a free basic valuation as part of your deal.

A Mortgage Valuation will not highlight any repairs that are needed. However, it may point out any obvious defects and recommend that you investigate further.

Homebuyer’s report

A Homebuyer’s report will cover structural safety and highlights problems, including damp, as well as anything that doesn’t meet current building regulations.  This kind of report will give you an independent report of your property by an expert.

To ensure you are not paying for two surveys it is advisable to ask the mortgage companies surveyor to carry out this report for you – it will usually take a couple of hours to complete.

Full structural survey

A Full Structural Survey is advisable for older properties and those of a non-standard construction.

Depending on the property size and type – a full structural survey can take as long as a day to complete.

A full structural survey provides a detailed report on the condition of the property and highlights issues that should be investigated further before going ahead with the purchase, providing you with peace of mind about the condition of your property.

You can find a surveyor to carry out a Homebuyer’s report or building survey through the Royal Institution of Chartered Surveyors.

Grimsbymoneyman.com & Grimsbymoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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