I know that there is a general limit of 3.5 times gross annual income for all new mortgages to buy a house. I want to ask that we can mortgage to buy 2 house and borrow up to 3.5 times income for every house?
A second house (at the same time) would not be a PPR mortgage and have entirely different rules.
2 houses at the same time?
not possible, you can only have one PPR, presuming one of them would have to be a buy to let , banks have different rules for buy to let mortgages.
or already have one house mortgaged and you are buying another?
presuming you can afford a second mortgage then the second one will be 3.5 limit yes, both mortgages don’t come under the 3.5 limit together.
there are rules and stuff about buying a second house, you can only have one PPR so one of them would be classed as a buy to let, bigger deposit for the second house and so on.
I stand to be corrected on the above , but that’s how I remember it anyway.
For a BTL you need minimum 25% deposit normally to start with
2 houses are not a same time. The 2nd house may be bought after the 1st house about a few of years.
For examples, can I mortgage 60% for the 1st house (3.5 times income) and after 2 years, I continue to mortgage 60% for the 2nd house (also 3.5 times income)?. I still mortgage 55% for the 1st house (have just paid 5%).
I dont believe so, they will take into consideration your current outstanding balance and take this out of the 3.5 your income, there is no way one could afford 7 x income anyway so you couldn't meet the stress tests id imagine
In theory yes, I did that. Bought a starter, traded up, kept the old one. It's classed as an investment I believe but there is no requirement to let it out. Banks are suprisingly chill so long as you keep repayments up.
You can buy a house, then apply for another mortgage and buy another house. They have individual 3.5 LTI limits so you can in theory borrow 7 times your salary. Heck I even got an LTI exception on the second one so probably borrowed about 7.5 times. Points to note are :
I cannot stress enough how much you should not count of this second mortgage getting approved. But you can try your luck.