Gifted House

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 ?

Mark

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.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

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