When talking about a second home mortgage, this can mean anything from a holiday home, to a second property for later life plan; to housing for one’s children, or as a property investment to be rented out to tenants. Moreover the applicant might not have a mortgage on their primary address, or this might well be a second mortgage. All these elements, and more, will be taken into account by the lender.
Those trying to get a second mortgage already own a property, so in theory have at least a reasonable credit history or income to have purchased a property in the first place. However when considering an application, lenders must consider that incomes can be stretched in order to pay any mortgage- second or not. Similarly, if the property is for redevelopment and resale or to be tenanted, there has to be the consideration of how likely these properties are to make a healthy return.
The responsibility of a second property is not taken lightly, and lenders tend to be more cautious when considering second property mortgage applications. New rules and practises regarding lending mean that tighter checks on credit and income history of applicants will help determine who can realistically afford a second mortgage.
Despite tighter checks on applicants, those on high incomes may receive some leniency when having their applications scrutinised, so long as affordability can be demonstrated.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Capital Fortune Ltd is an Appointed Representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority.
Capital Fortune Ltd is a company registered in England and Wales with company number 05683249. The registered office address is 128-129 Cheapside, London, EC2V 6BT.
The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
The Financial Conduct Authority does not regulate some forms of buy to lets, commercial mortgages, secured loans, unsecured loans, bridging loans, trusts, overseas mortgages, and conveyancing or debt management.
There will be a fee for our services, the precise amount will depend upon your circumstances, however we estimate that it will be £1495 in total and never more than 2% of the mortgage amount. The fee is typically payable £495 upfront with the balance due immediately on completion. The fee will be refunded if we fail to secure you an agreement in principle based upon the information your provide in the FactFind. You will not receive a refund if, having undertaken the FactFind, you provide inaccurate information, choose not to accept our recommendation or withdraw from the mortgage process.
You will be provided confirmation of our services which we will email to you in our Initial Disclosure Document (IDD).
Calls may be recorded for training and monitoring purposes.