Mortgage Question on 2nd Home for Work Purposes

[tleefox]

Morning all.

I'm being sent away for work, approx 3 hours from where I currently reside, which will require me to stay away in the week, for which I will be paid a lodging allowance.

Where I am being sent to property prices are very cheap so I am considering buying a 2 bed flat, instead of renting, and using the lodging allowance to pay the mortgage while I'm there, and renting it out thereafter.

I have an existing mortgage on our main property.

If I was to go down this route would I have to stump up the normal 20% deposit for a second mortgage? Or would I not fall into that category as (to begin with at least) I would not be renting the property out.

[Sarnie]

It can be done as a residential second mortgage but your income would need to stack up on affordability, to support both mortgages.

The amount of deposit required will be dependant on your earnings and how affordable both mortgages are.

[pacoryan]

How cheap is cheap? Could you obtain a further advance on your existing mortgage sufficient to buy the new place? Same borrowing limits apply in terms of aggregate borrowing.

If you were wondering if the new property could be a Buy to Let, it can't if you're going to live in it.