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Second property

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  • Second property

    My brother and I have already purchased a property together, I would like to move out, however we have still 6 yrs left on our mortgage and it is a fixed rate mortgage with a ERC.

    We would like to buy a second property because I would like to move out (find somewhere closer to work).

    Do you think we should buy this property together because we cannot buy each other out and we our stuck in this fix rate mortgage for the time being.

  • #2
    Hmmmm, thats not a simple question.

    There is nothing wrong with doing that if you are happy to own two properties together. It will be a lot simpler if they are a similar value too, thinking ahead for when you may want to go your seperate ways.

    Not sure how lenders will feel with you having a second residential mortgage, but I'm sure you can get around that. Also you need to bare in mind that from a lenders perspective you will have to demonstrate affordability for two mortgages, which may work out easier with two incomes.

    What it really comes down to is do you want to own another property with your brother? Also, can you afford it?
    Independent Mortgage Advisor, expert in residential, buy to let, holiday let, and refinance mortgages

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    • #3
      Hi, this will all come down to affordability as stated in the last reply. If you can afford it on your own then you avoid the issue over re-sale and equity splits (would you want more equity for decorating and adding value?) down the line but with current lending criteria being quite restrictive, i've found it increasingly difficult of late to make these types of deals fit.

      having said that there are a handful of lenders that will allow 2 resi' properties as long as the occupant in the other property is a close blood relative (parent, sibling, child)or dependent - do you look after granny and grandad in their old age.

      this post is a little old so you may have made a decision or even done something but if you need any help let me know.

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