Second mortgage always BTL rate?

B

Bow tie

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If we take on a second mortgage to purchase a do-er upper while still having a small first mortgage, does the second have to be at BTL rate?

If we wait until the first is done, but want to stay in home until the do-er upper is ready- will that sole mortgage still be at BTL rates?
 
If you tell them you intend to live in the do-er upper, they'll charge standard rates, but note if you are married this will involve signing a declaration that the do-er upper is to be your family home, and that then will enjoy the protections set out in the legislation.
 
Thanks Leo, married couple... first property would be our PPR until the second is ready, then sell 1st.
So, until ready, second would be a second family home- I thought I recalled AIB telling me I could only have a BTL rate unless I sell the first home?
 
Bow tie said:
So, until ready, second would be a second family home- I thought I recalled AIB telling me I could only have a BTL rate unless I sell the first home?
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Yeah, second family homes will always attract the BTL rate.
 
Leo said:
Yeah, second family homes will always attract the BTL rate.
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Suppose you have a married couple who have a mortgaged house in Dublin but want another mortgage to buy an apartment in Cork as one of them works there.

Assume both mortgages together would see them comfortably within Central Bank LTV and LTI limits.

Will all banks charge a BTL rate on the second mortgage? It seems a bit daft if both of them would get PPR rates if unmarried.
 
The banks don't want anyone getting a bargain!

If they don't sign the family declaration on the apartment purchase, they can be pretty sure it's not the primary residence. It's the same situation for anyone buying a holiday home, they're pushed on to the BTL rates.
 
Thanks Leo, that's mad for the sake of maybe a year of bridging between houses.
I assume once we sell the first we can renegotiate, just makes the whole thing even more expensive!
 
Bow tie said:
Thanks Leo, that's mad for the sake of maybe a year of bridging between houses.
I assume once we sell the first we can renegotiate, just makes the whole thing even more expensive!
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If you tell them you intend to sell the current home after you complete the purchase of the new one, you will get the lower rate. I don't believe they will stipulate a period in which you must sell, but worth checking out. I you must take out a BTL mortgage, then so long as you're not on a fixed rate it should be possible to switch once you move.
 
That shouldn't be a problem. We bought first and after few months sold the previous one. New house wasn't on BTL rates. Important to declare it upfront and do not rent out either of properties at any time.
 
Do second homes always attract the same deposit requirements as BTLs/Investor mortgages?

I'm considering buying a second home. It needs major renovation to get it to a liveable standard. It's in our dream location and it's viable we will move there permanently but I can't say for sure.

We've an existing mortgage but would remain under 3.5x salaries with this new mortgage.
 
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