Questions - Buying new house, letting current one

The_Daddy_2

Hi all,

The GF and I are moving in together. We have had an offer accepted on a house.

Plan is to rent out my flat, I have spoken to existing mortage provider and I can notify them of the letting and pay an admin fee.

Great.

GF already has her flat let.

Both flats will be let on the original residential mortgages, with the lenders notified.

Question - when it comes to the new mortgage application do the existing mortgages on the let (or soon to be let) properties count against us in the lending calculations. Should we even mention them, as the income outweighs the mortgage payments anyway? Or do the mortgage co's have some way of picking up that you already have mortgages for your old / current addresses? If we should disclose then do we just put the mortgage costs in as part of our standard monthly outgoings, but also include the income from the rent on the earnings section?

Any help / info appreciated. Just trying to avoid pitfalls when it comes to filling in the paperwork.

Thanks.

koexelek

You can't hide anything from the lenders, as all that information will show on your credit reports.
With a lot of lenders theses day though, if you have other mortgages in the background, as long as the new lender knows that the existing lenders know the properties are let, that there are assured shorthold tenancy agreements in place, and that the rent received covers the mortgage payments by a good margin, you should be fine.

If you satisfy all that criteria, it is likely they will ignore those mortgages for incme cacluation purposes on the new house, classing them as self funded by the rent

Robert_Sterling_3

The_Daddy wrote: »

Do the mortgage co's have some way of picking up that you already have mortgages for your old / current addresses?

If I knew what the address of your flat is then for three pounds I could find your name and who your lender is and likewise with the GF's flat. I could do it over the phone and have the answer in this thread within a few minutes.
If I can do that then a mortgage lender can do rather more by searching the Credit Reference Agencies.

During an interview you could be asked some questions to which the interviewer knows the answer already.

koexelek

Robert_Sterling wrote: »

During an interview you could be asked some questions to which the interviewer knows the answer already.

Exactly.

The lenders already know the answers to a lot of the questions they ask. They are just testing your honesty

The_Daddy_2

Thanks all, I thought that the existing mortgages would show up, and wouldn't like to be dishonest anyway.

Therefore when completing the application paperwork I should disclose the relevant mortgage costs pcm, and the relevant rental income pcm.

Most mortgage lenders will be OK about this? Am thinking of using FD specifically.