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Can I Have Two Mortgages in Sheffield?

Second Mortgage Advice in Sheffield

Depending on your income, affordability and the amount of equity built up inside your property, you may be able to take out a second mortgage.

People take out a second mortgage for various reasons, such as for a Buy to Let, Let to Buy, Holiday Let, family purchase, specialist situation or Commercial purposes. If you are considering one of these options, watch the video below or read on to find out how second mortgages work and why one could be the best option for you.

Reasons to take out a second mortgage

In our twenty years of working as a Mortgage Broker in Sheffield, we have come across many different types of customers that are looking to take out a second mortgage. Here are some of the most common customer scenarios that we come across.

Buy to Let

Current or budding landlords may want to invest in another property to climb the property ladder. If you are a landlord and already have more than one Buy to Let in Sheffield, you may find it slightly easier to take out a second mortgage as you’ve already demonstrated that you can afford more than one set of mortgage payments. This does not mean that you are guaranteed a mortgage though. You will still have to pass usual credit checks and affordability assessments.

If you are a First Time Buyer landlord in Sheffield, you will have to prove that you are able to manage two sets of monthly mortgage repayments. Lenders will factor in the equity in your current property, the type of property that you’re buying, the rental income from the Buy to Let and your personal and financial circumstances.

Let to Buy

Similarly to Buy to Let second mortgages, If you are planning to Move Home in Sheffield to become a landlord/grow your Let to Buy portfolio, your lender needs to make sure that you can manage both sets of mortgage payments. Some of our customers have already had tenants for their Let to Buy lined up during their second mortgage application process.

Lenders will assess your income, affordability, equity in your current home and personal and financial circumstances before accepting your second mortgage application.

Holiday Let

Holiday Let properties are great investments for those looking for an extra source of income. As a bonus, you will also have a place to stay at no added cost!

They work in the same way as Buy to Lets, however, your income from the Holiday Let may be more infrequent. Peak times, e.g., summer or Christmastime may provide you with more income; the lender will factor this into your Holiday Let second mortgage application as there will be times when you will have no rental income to contribute to your repayments.

You will need a large deposit for a Holiday Let as most of the properties in holiday locations are expensive.

Family purchase

Are you looking to take out a second mortgage to help a family member move into a new property?

Housing prices have skyrocketed, and First Time Buyers are struggling more than ever to get onto the property ladder. With this in mind, family members are offering a helping hand and taking out a mortgage in their own name so that their loved ones can move onto a property.

An alternative for parents or grandparents would be to gift their family members a gifted deposit. This can take off some of the pressure of saving up for that 5% mark and could help boost the overall deposit when combined with the applicant’s own savings.

You must be aware that the donor of the gifted deposit must declare in writing that this is not a loan it is a gift that should not be paid back in the future. The donor must also provide bank statements and proof of where the deposit has come from.

Specialist situation

If you are in a complex situation and you need to take out a second mortgage, we are here to try and help. A common situation that we come across involves applicants separating or going through a divorce and one party needs to take out another mortgage so that they can move out of the property.

In this situation, your lender will need to make sure that you afford two sets of mortgage payments as you will still be accountable for the repayments on your’s and your ex-partner’s mortgage. When you move out of the property, until your ex-partner can afford the repayments on their own, you will have to contribute towards them.

If you are in a complicated situation and you need to obtain a second mortgage, don’t hesitate to get in touch and we can take a look at your situation. We offer expert Mortgage Advice in Sheffield to all types of customers, struggling with all different kinds of mortgages.

Equity Release for a second mortgage in Sheffield

Equity Release is a way to release funds in your home to gain a lump sum of cash. There are different reasons why someone would want to release their equity; some people will use this cash to fund a second mortgage, take out a lifetime mortgage to replace their current mortgage or spend on something else of their choice. The lump sum that you release can be spent on anything you want to. We have seen customers use the money to pay for weddings, buy a new car and even to pay off debt.

Equity release is a very complicated subject, therefore, we would recommend getting in touch with our team to help you through the process. Getting a second mortgage can be difficult enough, never mind getting a second mortgage by releasing equity in your property.

Book your free mortgage appointment online or over the phone today by contacting a member of our team. We can’t wait to hear from you!

Sheffieldmoneyman Spring Budget 2021 Update

Rishi Sunak’s second Budget as Chancellor brought two pieces of welcome news for the property sector as the Government attempts to transform “Generation Rent” into “Generation Buy” to help stimulate the UK economy, namely the new 95% Mortgage Guarantee and an extension of the Stamp Duty Holiday.

95% Mortgage Guarantee

The name of this scheme is misleading as not everyone that applies is guaranteed to be offered a mortgage, it is still subject to affordability and credit score. The “guarantee” itself is that the Government will ensure Lenders don’t stand a loss if they grant a 95% mortgage to a customer who then subsequently falls into arrears and is repossessed leaving behind negative equity.

This scheme should in theory give Lenders more confidence to lend even though the applicant only has a smaller deposit to put down. Of course, Lenders never want to repossess someone’s home unless it is the last resort, but if that happens then the new scheme would cover any shortfall.

Lenders have been worried about the prospect of home values decreasing so this measure should alleviate that concern although of course, the chances of negative equity occurring will naturally reduce should property prices increase as a result of these announcements!

The scheme is available to both 1st Time Buyers and Home Movers, it’s available on any property (not just new build) and will run until December 2022. Some major High Street Banks have already signed up to the scheme and it’s likely more will follow later on. It’s still a big challenge for Lenders to cope with the demand they are getting for mortgages due to the difficulties training and supervising staff working from home but they will want to offer as many of these mortgages as they can.

Stamp Duty Holiday Extension

When the Stamp Duty Holiday was launched last year we all hoped life would be very much back to normal by the cut-off date of 31st March 2021 but things didn’t pan out that way as we know. Solicitors are struggling to keep up with the workload and if lots of chains had collapsed then it would have partly defeated the object of the exercise.

Therefore it was good to hear the scheme has been extended to 30th June for purchases up to £500,000 and 30th September for purchases up to £250,000.

The Government certainly sees the property sector as an area that can play a big part in our economic recovery and if you are looking to buy a home or remortgage this year please reach out and we will be happy to advise you.

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Mortgage Broker in Barnsley | Mortgage Advice in Barnsley

Fast & Friendly Mortgage Advice in Barnsley

We are a Mortgage Broker in Barnsley. Were here to provide help & guidance throughout the whole mortgage process. With having over 11 years’ worth of experience we know everything mortgage-related. Approaching an experienced Mortgage Broker in Barnsley like ourselves will allow you to get through the mortgage process with comfort and ease. That’s exactly what you want! We will try and take all of the stress away. Allowing you to sit back and relax whilst we find you the best mortgage deals.

We are a Mortgage Broker in Barnsley and we are here to provide help & guidance throughout the whole mortgage process. We have been in this business for over 11 years now and we are know everything mortgage. Approaching an experienced Mortgage Broker in Barnsley like ourselves will allow you to get through the mortgage process with comfort and ease. That’s exactly what you want! We will try and take all of the stress away and allow you to sit back and relax whilst we find you the best mortgage deals.

Here are some examples of our Mortgage Advice services we offer in Barnsley:

  • First-Time Buyer Mortgage Advice in Barnsley
  • Moving Home Advice
  • Buy to Let Mortgage Advisor
  • Right to Buy Mortgage Advisor in Barnsley
  • Help to Buy Mortgages
  • Self-employed Mortgage Advice
  • Specialist Mortgage Cases
  • Remortgage Advisor in Barnsley

Mortgage Broker in Barnsley

We take pride in how much customers value our amazing service. We always get fantastic reviews and we love to share them. It’s an outstanding feeling when we see how much a customer has valued our support. We know the mortgage process can be complicated and very stressful. It can be made easy with just one call! Speak to an expert Mortgage Advisor today. You can find lots of great reviews on our website or through Reviews.co.uk.

A Mortgage Advisor in Barnsley will search through thousands of mortgage and remortgage deals on your behalf. They will go above and beyond for you until they have found the perfect deal that is best suited to your individual circumstances. No hurdles are ever too big to overcome, we will always try our best to get over them.

Speak to a Mortgage Advisor in Barnsley

We have Mortgage Advisors available 7 days a week. Get in touch and receive a Free Mortgage Consultation from your local Mortgage Advisor in Barnsley. We can get through this process together and provide you with a helping hand with anything else mortgage-related along the way.

You choose how you want to communicate with us. Do you want to meet face to face with a Mortgage Advisor in Barnsley? Talk over the phone or through email? It is completely up to you, we want you to feel comfortable at the end of the day. We hope to hear from you soon!

Mortgage Broker in Barnsley

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UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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