Renting out my flat and buying a house

businessisgood

Hi there,

Just after some advice and help please from the experts.

I have a flat which I have lived in and had a mortgage on for the last 18 months. I now have a deposit for a house and want to move. Ideally I would like to keep my flat and rent it out. The rent I would receive will cover the mortgage.

Would a lender consider lending me the money for the house if I already have a flat?

I have about 12% deposit for the house I want.

Thanks

Senior_Paper_Monitor

Value of flat (realistically) and amount of current mortgage ?

How long does your current mortgage have to end of deal ?

businessisgood

Value of flat around £90,000
Current mortgage outstanding around £77,000
6 months till current mortgage deal ends

Yorkie1

Assuming you own the leasehold of the flat, does the lease of the flat prohibit subletting?

businessisgood

Yorkie1 wrote: »

Assuming you own the leasehold of the flat, does the lease of the flat prohibit subletting?

There is no issues regarding the renting of the flat.

It's just an additional mortgage I was wondering about for a house.

Thrugelmir

Have you asked your current lender if they will allow you to let the flat, if so what the terms will be?

A 12% deposit on the house isn't going to allow you to obtain a very good mortgage rate. Realising the equity in the flat may be worth considering if it improves the LTV.