Will a recent short-term move affect my ability to get a mortgage?

gwernybwch

Recently I’ve got myself a new job (and are about to pass the probationary period), so are trying to make all the arrangements to buy a second house closer to my work whilst renting out my first house.
I’ve already got some tenants who have signed a tenancy agreement to move in on the 1st July and have sent off my ‘consent to let’ form to my mortgage provider – so the renting out of the first house is well under way.

I’m looking around for a second house to buy, but there is a distinct possibility that I will have to move into rented accommodation for a short period (say a couple of months) of time whilst I find the right house to buy.

So my questions are –
(a) What is likelihood of getting two residential mortgages?
(b) Will the short-term move to rented accommodation significantly affect my ability to get a second mortgage?
(c) If so, is there anything that I can do to assist that second mortgage application (get a land line? Get added to the electoral roll?)

Thanks in advance for any replies.

dimbo61

Putting the cart before the horse comes to mind!
I would have got consent to let before renting out the property as your lender may say NO
renting a property will have no effect on your ability to get a second residential mortgage so long as your income can cover 2 mortgages!!
most lenders like to see at least 3 months pay slips and that you are not in the probationary period so renting might be a good idea as you can rent somewhere cheap and build up a deposit

gwernybwch

Thanks for the reply and the comment regarding renting. So am I right in thinking that having a short term move wouldn't have an adverse affect on my second mortgage application?

dimbo61 wrote: »

Putting the cart before the horse comes to mind!
I would have got consent to let before renting out the property as your lender may say NO

Point accepted. I didn't really have much choice but to do it that way around - I wasn't going to pass up the opportunity of signing up tenants 3 months in advance.
I did speak to my lender first to get a feel for their consent to let criteria, my mortgage on the property is so low that they didn't seem unduly worried. I also took the view that if a consent to let was refused, I could go down the route of either getting a secured loan or maybe a BTL mortgage.

gwernybwch

Is anyone able to answer my original questions?

Thanks in advance for any replies.

Thrugelmir

There shouldn't be an issue in obtaining 2 residential mortgages providing you meet the lenders criteria.

Consent to Let is normally granted for a 3 year period, so is in effect a temporary arrangement.

m_13

We lived in rented for six months whilst we decided where we wanted to live after moving to a new town. It certainly complicated our credit rating as we had to give three addresses to cover three years. We've just gone over three years in the flat we bought after living in rented and hopefully exchange on our new purchase today.

We also had problems with contracts for services where the people wanted a twelve month commitment (Virgin, BT).

Overall it helped us find where we liked in a town we didn't know. We once moved into rented in Burnage without knowing the area at all and had made a terrible mistake. Thank goodness we were renting and after the six months could move out and far, far away.

gwernybwch

Thanks for the replies.

m_13 wrote: »

We lived in rented for six months whilst we decided where we wanted to live after moving to a new town. It certainly complicated our credit rating as we had to give three addresses to cover three years.

When you say that it "complicated your credit rating", do you mean it meant that it was harder to get a mortgage and credit in general or simply because you had recently moved house or that it was just a case of more difficult in completing the application forms, proving residence etc?

m_13

Both really. We were different to you in that we had paid off our mortgage and all our debts and so we actually found it hard to get credit and a mortgage again! For other things the address change business was hard as people seem to want you to stay somewhere for three years and are suspicious of short-term changes. Once we moved to our current flat (still haven't exchanged grrr) we then had four addresses covering three years and that was even worse as it didn't fit on forms!