Buy-Let-Let And Residential Mortage

pgamble

Hi,

I currently have a mortgage of £94k on a Property valued at £145k, I want to rent this property out and buy another property with my partner who also has a mortgage on her property. We would like to sell her property to fund the purchase on the property that we will both live in.

What implications does switching my property to a buy-to-let mortgage have on us getting a joint mortgage on our new home? We have a decent sized deposit for the new home and both have decent incomes.

Any advice would be appreciated?

herbiesjp

Ask your current lender for consent to let first - if you are currently on a good rate, otherwise switch to a BTL if they will not allow this.

The BTL lender will need the rental income to support the requested mortgage, based on their rental calculation.

As long as the BTL is self financing i.e. rental income cover mortgage payment, then the lender for the new residential property should ignore this property in the background (different lenders require different levels of rental coverage).

Now there is other criteria to fit, but that in essence is how it works.