Buying a second house - advice please!

Timmne

(Sorry I posted this in the wrong board before)

Morning all.....

Wondered if anyone would be able to advise me on this please?

My lovely lady and I are going to need to move out of our city centre apartment (I know i know, it's really a flat) soon to make room for a household on the brink of getting bigger than the two of us!

The problem I'm having though is the place we own is so amazing, there are very few other flats like it around us, and certainly nothing with the spec that ours has for the price we bought it last year.

SO - my plan is initially to rent our place out so we still own it, and then rent a house for us to live in elsewhere. I then thought that after a certain amount of time our flat must be seen as a self-sufficient income to a mortgage lender mustn't it? - I.e. we can then borrow on another house if the flat is paying for itself....

Does this sound feasible, and if so how long would we need to rent our place out for?

Cheers happy people!!

herbiesjp

Some lenders will be happy with no track record, just confirmation that the property will be let out and that the rental income will more than cover the mortgage payment on the property.

Some lenders will however want some track record before "ignoring" the property in the background

So if you wanted, you could buy your new property straight away, assuming you fit the criteria of the lender in all other aspects

HTH

Timmne

Crikey!!

So if my girlfriend and I were already at our 'lending limit' on the current mortgage it shouldn't matter as long as the rental income covers the mortgage?

Ta for help!

herbiesjp

Timmne wrote:

Crikey!!

So if my girlfriend and I were already at our 'lending limit' on the current mortgage it shouldn't matter as long as the rental income covers the mortgage?

Ta for help!

Without knowing anything about you it is difficult to say what would be wise or not.

I think common sense should prevail here though, as if you did let out the first property you would need to make sure you had enough safety net financially to cover void periods and all other associated costs of letting out a property.


Also be careful that should you be in a position to have to chnage to a BTL mortgage rather than consent to let from your current lender, you would need to make sure the rental income was sufficient

So be careful when looking at the new scenario

Maybe my first post made it sound a little too easy

HTH

Timmne

I must say you did extend a good old silver lining around the rental cloud! Although I am reasonable sensible so knew it wasn't that easy!

Can you not ordinarily rent out your place on an ordinary mortgage?

herbiesjp

Timmne wrote:

Can you not ordinarily rent out your place on an ordinary mortgage?

You need to advise your current lender (and buildings insurance provider). The lender may provide consent to let and they may not.

They may say ok and you have to pay a fee and they may keep you on your current rate. Some other lenders may decide to increase the interest rate as well.

Some may say no, and therefore you will have to find a BTL lender assuming you are within the BTL loan limits and the rental income is sufficient.

Your new lender will want confirmation that the "old" property mortgage payment is covered by the rental income.

HTH