Two joint mortgages

mortgagehelpneeded1

Hi all,

I currently have a joint mortgage on a flat with my friend but am looking at buying somewhere else with my girlfiend. Having trouble selling the flat at the moment so am considering renting it out.

Would this have a detrimental affect on my ability to get another mortgage with my girlfriend? Depending on rental values at worst I would have to pay £100 a month towards the mortgage on my current flat.

Also does being married improve your ability to get a mortgage?

Any advice greatfully received.

Cheers.

Caz3121

Will your salary multiples support both mortgages?
With your current flat you will need consent to let from the mortgage company or change to a BTL product. Permission/BTL will be based on the LTV and the estimated rental....it is roughly <80%LTV and rent of 110%+ of interest payment.

Could your friend buy you out or are they wanting to sell also? Do they still live in the flat?

holly_hobby

A let to but mortgage would be my suggestion .... (let to buy means that you are letting property no1 to purchase your main residence i.e prop no 2 ) - and as long as your income covers the mge for your main residence & evidence of a tenant and rental agreement for prop 1 - the lender will be agreeable to consider lending.

Suggest visiting a mge adviser as they will be aware of the lenders still in the market for this type of mge.

OR those that will "ignore" or disregard prop no 1, as long as the property they are lending on is your main residence - lenders who do this don't advertise - so knowledge of them is very much a professional secret if you will ...

Or if the above fails .... you could remge prop 1 onto a buy to let.

Or looking at it from a completly diff angle - you could buy prop 2 as a buy to let - but actually live in it yourself (i.e you couldn't find a tenant so you moved in (if you get what I mean) .. Typical BTL criteria is that there has to be short hold tenancy agreement drawn up, that the rent is 120% of the mge repayments, or on a 5 yr fixed equal to the mge repayments themselves, and sometimes the rental managed by an ARLA letting agent (although not all lenders make this requirement - as long as there is a SHT in place they are happy). But the drawback will be that the mge rates will be higher than a standard mge - but its an option.

My advice - a broker who is clued up will know how to deal with this & the best route to take.

Hope this helps

Holly

mortgagehelpneeded1

Thanks both