Do you really need a regulated buy to let mortgage? Residential second home mortgages are cheaper
It is not always necessary to take a regulated buy-to-let mortgage if you are purchasing a second property for a family member to live in. Second home mortgages are cheaper and widely available on interest-only.
Many banks and building societies provide second home mortgages, and they are happy when immediate family members live in the properties. The larger lenders offer second home mortgages providing you earn enough money to meet the affordability requirements, and you have a deposit of at least 15%.
The rates are fantastically cheap rates through the leading lenders while regulated buy-to-let mortgages tend to be more expensive and available through the smaller building societies.
Aaron Strutt, product director at Trinity Financial, says: "When we get calls from people asking for a regulated buy-to-let mortgage, we ask whether a second home mortgage would be more cost-effective and suitable.”
"For second homes, holiday homes and properties occupied by a dependent relative, most of the lenders will consider the monthly running costs of both properties and check the applicant can afford to cover the costs."
It is important to remember the lenders will not normally consider the financial contributions (rent) from an occupant when assessing how much they will lend. This means your mortgage affordability may be affected if you plan to move or borrow money in the future.
Call Trinity Financial on 020 7016 0790 to secure a second home mortgage or book a consultation
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