mortgage with rented property

MeMe99

How do mortgage lenders take rental property into consideration when calculating how much you can borrow?


I have a property that has been rented for a number of years, there is no mortgage on this property.



Do they calculate the amount I can borrow

1. only on my salary
2. salary + annual rental income (or % of) * 3.5 (or whatever it is now)
3. calculated on salary * 3.5 + then add a percentage of the property value

I would like to buy a property which would be valued more than the rental property. Would I be classed as a first time buyer (with security of the rental property) or re-mortgaging?


What is the minimum percentage of the property value that I should be looking at for a deposit?


I do not have any debt and have a good credit rating.

herbiesjp

MeMe99 wrote: »

salary + annual rental income (or % of) * 3.5 (or whatever it is now)

Most will look at it this way

For the new purchase 10% deposit is minimum

For good rates however, 25% and over will be needed