Which lenders?

snowlady07

My partner and I plan to buy a house together in the near future. We both already own properties.

I have a two bed terrace which I would prefer to sell but am considering renting it out as the market in my area seems to have come to a complete stop. My mortgage is currently £225 per month and if I rent it out it should bring in at least £450 per month. So seems like a feasible option. I've spoken to my mortgage company about consent to let and all seems straightforward.

My partner will have to sell his house to release the equity for our deposit. He's SE and also owns two other buy to let properties which have been rented out for a number of years on a multi-let basis. These are very profitable.

I believe some lenders do not look favourably on you if you have lots of other mortgages so some advice on who to look into/avoid will be great. We are planning to see an independent broker but a bit of background knowledge will be handy.

Incidently, these are the figures we're looking at. Myself, I earn £25k with approx £2k bonus. OH, has £30k-£40k verifiable income. We're looking at properties up to £220k with a £35k deposit.

Thanks in advance.

Thrugelmir

Does your partners income include the property rental income?

snowlady07

No, that's the income he makes from his day job (SE Plumber). I was led to believe that most mortgage companies won't take rental income into affordability calculations, it just offsets the monthly mortgage payment.

Thrugelmir

snowlady07 wrote: »

No, that's the income he makes from his day job (SE Plumber). I was led to believe that most mortgage companies won't take rental income into affordability calculations, it just offsets the monthly mortgage payment.

I thought you said that the BTL's were highly profitable?

Shouldn't be an issue if they are. As the rental income should exceed the mortgage interest and costs of running the business and properties.

snowlady07

They are, he makes approx £1200 profit per month from his rental income so his real income is £42k-£52k. But I thought banks didn't take into account rental income if there were mortgages on the poperties. If they do, that would be great!

Sorry if I'm being a bit vague!

Thrugelmir

snowlady07 wrote: »

Sorry if I'm being a bit vague!

Not a problem. Very difficult to explain everything in a few lines.

Property letting is a business. So providing there are accounts to support. Shouldn't be an issue.