Can I have two residential mortgages by living in one and letting the other property out? This is for UK law.?
Answers: As long as you can afford to pay them off then there is no reason why you can;t have more than one.
You can only have one property mortgaged as an "owner occupier" (if thats what you mean by residential mortgage).
But you can have as many as you can get as "buy-to-let" mortgages. These are business mortgages, but have lower rates which reflect that letting is a reasonably safe way to guarantee income.
If you are letting the 2nd property out then this should be changed to a buy to let
With a buy to let mortgage many lenders will base the amount of advance they are prepared to lend solely upon the rental income that a property is expected to achieve.
Lenders will usually require the rent to be 125% of the mortgage payment. However, some lenders will allow the rental income to be equivalent to 100% of the mortgage payment or take other income into consideration (employment, investment, pension income if their is a shortfall in the rental income).
Example:
If your monthly mortgage payment to a lender is £500pm then the rental figure would have to be £500x 125%=£625pm. However, some lenders will consider lending on a rental yield that matches the mortgage payment (ie £500).
You will need to check carefully that your proposed property, and that tenant is acceptable to your lender (as some lenders refuse to lend on ex council property, and / or DSS tenants).
Deal
Consider what type of deal you wish to have
Fixed, Discounted or Tracker
Do you want to repay your mortgage on a Capital and Interest basis or Interest only basis
Do you want to be able to make overpayments on your mortgage.
Other matters to consider
Allow yourself a surplus emergency fund as this will allow you to carry out any repairs or alterations to the property
Allow you a fund for periods when the property is not rented out (change of tenants) Be aware of the tax implications of owning the property
There are many deals to chose - if you want to know more drop me an email
My neighbor wont reimburse for the biddable neighbor type fencing (after the work be done) what do I do?
He was interested and agreed to the undertaking, we did the work and paid for supplies and labor, very soon he dosnt want to share the bill.any advice?
Answers: if you rewarded for everything up front and have no written agreement, you vitally are screwed. at least you own a fence...or, you could rip it down and then buy a bunch of ducks and put their nurture by the perimeter so they run over the boundary lines and poop all over the place.
Paint a middle finger three foot tall above the word DEADBEAT on his side of the barricade.
Unless it's in writing, you really don't enjoy recourse to get the currency, but you can make him touch like a nudge about it.
You could whip him to small claims court, it helps to enjoy it in writing though.
If you win the overnight case, he will be ordered to pay the court costs.
You could try small claims court or see a legal representative. Verbal agreements are enforceable, but are harder to prove than written contracts. If you have witnesses who can verify that both of you made this agreement, it would sustain. A spouse is generally view skeptically as a witness.
Why bail out loans and mortgages? I thought this be the estate of the free?
"Do people really believe that bailing general public out of the loan crisis will help American family? Increasing the Fannie Mae limit loan precincts will only hurt family like mine who own worked hard and save. This will only relief the speculators, banks and unadulterated estate agents." Yes, and I do not want pay for other people's mistakes. I don't own to when they pick the wrong stock or bond, or bought too many lotto tickets or the wrong no return set of two of $500 dollar shoes, or their lack of foresight when investing within a gas consuming SUV before prices go through the roof, so why do I now?Answers: Because here is millions of homes across the country going into foreclousure and about partly mill going through short sales. It isn't mistakes of the ethnic group, it is the guliblity of Americans and it hurts everyone. Housing market go to the crapper and people are human being pushed on the street and unable to buy another home because mortgage companies aren't liable to pay the lofty price of homes. It isn't just stock market that went bust and it defiantely isn't because folks wouldn't return those shoes. Also most people are buying import and not gas guzzling SUVs in this country.
I agree that we should not probably be bailing out the mortgage companies.
However, we will probably terminate up bailing them out, one way or another. When the money and loan companies went belly up and elected representatives got rear a lot of those properties because they have guaranteed the loans to the savings and loans. The Resolution Trust Corp be a specially created government agency to unload the thousands of homes that be defaulted one. Which tanked the definite estate market even worse.
At this point I believe they are trying to not commit like peas in a pod mistake a second time. This is why I believe they are working to provide some kind of bail out type program to the RE industry. They did it for the airlines, why not the RE industry.
The problem is if you own hundreds of thousands of houses defaulted on because of the impossible loans, it will ultimately affect the millions of loans where the relations are making their payments. Then those individuals start defaulting because their home values go down to the point they cannot supply for what they owe.
Not sure what they real solution is, but my bet is that it will involve some type of rule bailout.
Depends on what you mean by "bailing out". There is no road to sweep all that have happened beneath the rug now. It isn't simply an issue with mortgages, but also loans within general. Cars, boats, homes, businesses...you identify it. There is a statistic I read the other day that stated the average American spends 104% of their income...104%! What does that make clear to you? The fact of the situation is, most of our society and none of our children have be trained, taught or work out how to live on a budget.
If you think you don't own to pay when someone picks the wrong stock or bond or bought to various lotto tickets...you are greatly mistaken also. All those things added to the spendable, or lack at hand of, family incomes are what is cause the overall devaluation of the dollar and the ever-growing indebtedness of the average American family.
Our national debt grows at a rate of $1.6+ Billion a DAY. This country is completely insolvent and it have to start with administration spending. We are no longer a free country...we actually are slaves to our government's inability to hack it its money. Is it any wonder why the average American can not live within its income margins...just look at our example...our political affairs. Deficit spending is the norm...but in the bring to a close...should we all be enslaved to the debt of a senate that we did not create ourselves? Am I responsible for the National Debt? I think not. I didn't impose that train wreck...but we are all one held responsible...out of our own free will. We all provide money to the IRS every year that goes NOT to our political affairs...but to pay towards the interest on the National Debt.
My cross-examine is this...what has to finally crop up before empire realize what our government continues to do to us...every...single...sunshine?
To comment on EDWARDOG's post...
If you think for a minute that bank are losing money on mortgages going into foreclosure...you are wrong. There is a little prearranged fact call "fractional lending". Nearly every single loan given is monitized and used as an asset to lend against in the Federal Reserve System. If I administer you a "loan" for $10,000 to buy a car. I hold that note, deposit it to a operation account and later can in turn lend against that file up to 9Xs its amount. That is according to the Federal Reserve System. It works the same path in the mortgage industry. Mortgage Companies don't lose money...they use the details to manufacture more money to lend.
If you really want to verbs your brain...think give or take a few this. Why does a mortgage company have to foreclose? If you own a property and you rent it out and the tenant stops paying you...what do you do? You evict them. So why don't mortgage companies evict the homeowner? Its because they can't. Mortgage companies don't own the properties to start with. The individual way they can evict you is to hold the home go to Sheriff Sale...where on earth 9 times out of 10...they are buying the property back. But if they owned the property contained by the first place...why would they have to buy it subsidise at Sherrif Sale? There is an answer...I know it...but if you want to know...do some research. All the answers are out there for everyone...adjectives you have to do is poke about for them.
I've worked in the mortgage & title industry for nearly 20 yrs presently. I also was an excutive for one of the largest mortgage servicers within the country and I can tell you in that is a whole lot of fraud going on...but population just don't see it.
It wasnt the Brokers it wasnt the borrowers it be the goverment plain and simple. These loan companies knew they be giving out more and more money sometimes on homes that just get out of a refi months before they did it again. Did you you know that the federal reserve is a private corporation? It is not owned by the goverment at adjectives. However they are greatly influenced by the politicians that are the drunk drivers at the wheel of this once great nation. This recession is months away from a depression. Look it up. Recession is 3 consecutlive negetive months of wealth. A depression is 4 quaters of negative growth. It is goping to take place in 2008. This will be worse than the 1930's and when its adjectives said and done the goverment will be looking to Unify North America. The NORTH AMERICAN UNIOUN. They will tell us it is the simply way to create duty stabilty and to turn this nation around. Look what has not long happened contained by Europe. The Euro and the unioun of the all of Europe where on earth it used to be divided. You can call me crazy if you want but this be the goverments doing and on purpose too.