Posted on 3 May 2012 by Mark
If you have received a gifted house with 30% equity and continue to pay the mortgage for it, but due to the timing you can afford a deposit for a second house also within the 1st year of of receiving the gift, is this accepted by the industry. Can this be done and is it allowed ?
This is going to depend on what your intentions are for each house. You will not be able to maintain 2 residential mortgages unless one is a either a pied-à-terre, a home for a dependant relative or you get permission to let from your existing mortgage lender.
In the first 2 circumstances your earned income will need to be sufficient to cover both mortgage debts, whilst in the second the mortgage debt on the let property can be ignored if there is sufficient rental income. Normally you will need a monthly rent of at least 125% of the mortgage payment.
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