A house it live and a house to rent?

white_noise

looking forward a fair way into the future and wonder is if anyone can give any pointers
I'm currently living in my girlfriends house with her and one lodger, me and the lodger pay her rent. All fine and comfortable, saving a good amount for a deposit as lodger covers it. Me and my girlfriend are looking to get a place of our own in the near future, in 1-1.5 years, by that time i will be looking to have a deposit of £20k saved up (I'm a FTB) and she currently has £20k that she took out of her current house for a family member that she has since got back. at the moment that is in premium bonds but i think that it would be better paid back into her mortage so the payments are less, though there is fees involved, though i don't know the ins and outs off this as i have never had a mortage.
so in essence her '20k' in my mind isn't really real as its out of her house.
we are looking to buy a house at the 160-180k mark but she wants to keep hold of the current house to rent out, i am a little bit hesitent about this as as if there are no tenents renting that is ~£1800 in mortage payments a month (old + new house)! so we would have to put a fair amount aside before we buy to cover if any of these months happen.
what i am really asking is what pitfalls could there be in keeping the old house as a rental while having another house, does it effect the banks lending that 'we' effectivily have another house? Will the bank think less of our deposit as 20k will have come out of a house equity? or do they even care?
Cheers
WN

white_noise

bump bump
WN

Oldernotwiser

My thought are that 1 - 1.5 years time isn't the near future and that if your girlfriend wants to hang on to HER house then that's her concern and none of your business!

white_noise

Oldernotwiser wrote: »

your girlfriend wants to hang on to HER house then that's her concern and none of your business!

we will have a joint mortgage on the new house (50/50) so it is a very big concern of mine to make sure that we can keep up our payments on the new house and to make sure that the payments on the other mortgage (if the house is empty) aren't crippling her/us finacially.
WN

Oldernotwiser

But you're only a lodger and you're already telling her what to do with her money! "at the moment that is in premium bonds but i think that it would be better paid back into her mortage so the payments are less,". You're getting a bit ahead of yourself I think!

white_noise

Oldernotwiser wrote: »

But you're only a lodger and you're already telling her what to do with her money! "at the moment that is in premium bonds but i think that it would be better paid back into her mortage so the payments are less,". You're getting a bit ahead of yourself I think!

aswell as her lodger i am also her long term boyfriend, not that that gives me the right to tell her what to do, you seem to have missed the part where i mention that there are fees involved and i don't know the ins and out of HER arrangement, so what i think through lack of knowledge of mortgages may not be best.
if you think that i am getting ahead of myself with already telling her what to do with her money, then do you think that there is a time when someone should tell a partner what to do with their money? if you do that is hardly a relationship!
anyway this is just back story, the reason for my post is to find out how the banks view having a property/mortgage and if they actually care where deposit money for a new place comes from?
anyone like to get this back on topic?
WN

cupid_s

We enquired about something similar when we wanted to buy somewhere new whilst we still had our current house. The current outstanding mortgage was taken off the total mortgage we were allowed so we could borrow less for the next house. We we're told this wouldn't be the case if we were going to rent out our current house, but to do this we would have to change to a buy to let mortgage (with 1k arrangement fee and a current interest rate of almost 8%).

As for where the deposit money came from I don't think it makes a difference. We asked if we could take equity out of our current house to put a bigger deposit down on the next one and our bank had no problem with us doing this as long as it stil left enough equity (20% or more) in our current house. In fact they suggested this to us as a way of getting a higher deposit together to get a better rate on our next mortgage.