2 mortgages...

daleuk_3

Right.. im thinking about buying an apartment for investment purposes. I have a good agreed price. I would rent it out and down the line sell it on.

However, if say in a few years time I wanted to buy another house. Would I be able to borrow more money for this?

The original mortgage would not be much more than my annual salary.

Leon_W

Currently yes, but who knows in a couple of years time !

Generally, if the investment property is bought on a buy to let mortgage, and the rent covers the monthly mortgage payment by 125% on an interest only basis, then a prospective new residential lender would probably not take it into account when calculating affordability for a new mortgage.

A couple of years is a long time in mortgages at the moment though !

Regards

daleuk_3

Leon_W wrote: »

Currently yes, but who knows in a couple of years time !

Generally, if the investment property is bought on a buy to let mortgage, and the rent covers the monthly mortgage payment by 125% on an interest only basis, then a prospective new residential lender would probably not take it into account when calculating affordability for a new mortgage.

A couple of years is a long time in mortgages at the moment though !

Regards

Thanks Leon.

Im thinking of buying it on a first time buyer deal. As the rates are much better.

Yes the rental should return 200% of the mortgage payments.

When I go for say another mortgage would I just get the same deals as first time buyers?

VIGILANT22

with no residential mortage you would struggle to get a BTL..even with a residential some lenders will not consider 1st time landlords...dont even consider taking a residential and letting it out

daleuk_3

Why should I not take a residential mortgage and let it out?

VIGILANT22

Because it is called mortgage fraud.....A residential mortgage is for you to live in....A Buy To Let Mortgage is for tenants.....