Mortgage for second property.
Discussion
Hi All,
After a bit of advice before I proceed.
I have recently moved jobs as a hospital doctor and now live too far from my family home to work on calls from there.
The onsite hospital accommodation is very poor and often has no hot water.
I have been considering buying a small second property to stay in.
I haven't really thought about renting out a room and on balance would prefer not to.
My own home has 7 years of a fixed rate mortgage left and then its paid off so wont be able to add it to this.
What type of mortgage would I be considered for?
Additional problem is that I ideally would only want to pay a 10% deposit.
Thanks for any advice.
After a bit of advice before I proceed.
I have recently moved jobs as a hospital doctor and now live too far from my family home to work on calls from there.
The onsite hospital accommodation is very poor and often has no hot water.
I have been considering buying a small second property to stay in.
I haven't really thought about renting out a room and on balance would prefer not to.
My own home has 7 years of a fixed rate mortgage left and then its paid off so wont be able to add it to this.
What type of mortgage would I be considered for?
Additional problem is that I ideally would only want to pay a 10% deposit.
Thanks for any advice.
DogRough said:
Bear in mind you will be liable for CGT when you sell the 2nd property.
Possibly not.
One of the exemptions (certainly used to be) concerns employment requirements.
Might be worth checking to see if that still applies, and if so, whether it is applicable to your own circumstances.
Jon39 said:
DogRough said:
Bear in mind you will be liable for CGT when you sell the 2nd property.
Possibly not.
One of the exemptions (certainly used to be) concerns employment requirements.
Might be worth checking to see if that still applies, and if so, whether it is applicable to your own circumstances
Not relevant in this situation though as:
1. It sounds like the family will continue to live in the main residence so PPR relief would be preserved that way.
2. Job-related accommodation is very narrowly defined as a specified employee who must live in a specified property provided by the employer as part of their job, e.g. school caretakers, church ministers. Neither properties provided by the employee nor general 'must live within x minutes/miles' requirements qualify as job-related accommodation.
3. It provides no relief from Capital Gains Tax upon the disposal of the second property.
tyrone1973 said:
What type of mortgage would I be considered for?
Additional problem is that I ideally would only want to pay a 10% deposit.
.
Another mortgage really shouldn't be a problem as long as you pass the affordability to pay both mortgages on your salary.Additional problem is that I ideally would only want to pay a 10% deposit.
.
Your additional property purchase will be liable for the 3% additional rate stamp duty.
Perhaps purchase something you could then let out when your done with it, rather than dispose of.
Due to collapse of local housing market I would probably only have around £160k in equity.
But can't lose money if you don't sell - even if you did put a huge amount in!
Family happy and will not be moving.
Looking at various properties at less than £100k.
Have at least £10k for deposit sitting in current account.
I don't think I will have any problems with affordability.
Interesting idea on taking another mortgage out on family home.
But can't lose money if you don't sell - even if you did put a huge amount in!
Family happy and will not be moving.
Looking at various properties at less than £100k.
Have at least £10k for deposit sitting in current account.
I don't think I will have any problems with affordability.
Interesting idea on taking another mortgage out on family home.
ninja-lewis said:
Jon39 said:
DogRough said:
Bear in mind you will be liable for CGT when you sell the 2nd property.
Possibly not.
One of the exemptions (certainly used to be) concerns employment requirements.
Might be worth checking to see if that still applies, and if so, whether it is applicable to your own circumstances
Not relevant in this situation though as:
1. It sounds like the family will continue to live in the main residence so PPR relief would be preserved that way.
2. Job-related accommodation is very narrowly defined as a specified employee who must live in a specified property provided by the employer as part of their job, e.g. school caretakers, church ministers. Neither properties provided by the employee nor general 'must live within x minutes/miles' requirements qualify as job-related accommodation.
3. It provides no relief from Capital Gains Tax upon the disposal of the second property.
selym said:
Do military married quarters count as point 2?
Generally, yes.https://www.gov.uk/government/publications/living-...
ninja-lewis said:
selym said:
Do military married quarters count as point 2?
Generally, yes.https://www.gov.uk/government/publications/living-...
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