how do i buy to let....

karlos007

I have spotted a bungalow for the mother in law and have wanted to do a buy to let for ages.

My own home is worth 200k with a mortgage of 90k outstanding over 10 years.

Can i just increase my own mortgage to meet the purchase price of 70k or will i need a totally seperate mortgage for the second property??

agrinnall

It's unlikely that your lender would allow you to increase your mortgage to £160K (i.e. 80% - may be higher if you are just guessing at a value of £200K as a mortgage valuation is very likely to come in lower) in order to buy another property. The only way you'll know for sure is to ask them, although if you say who it is with someone may know what their policy is.

Mrs_Z

Depends on your overall situation I guess, income, LTV, assets etc. We have remortgaged our current property twice in the past to buy a holiday home as well as btl, neither time with the current lender.

Thrugelmir

Most lenders will not consider BTL where related parties are involved.

holly_hobby

You may of course remortgage your current main residence to release funds to wholly or partly fund a 2nd property purchase.

If you seek a BTL mortgage on the property itself, the fly in the ointment is the fact that BTL mortgages are unregulated mortgages which is fine if not letting to family members, if you rent to family this will take it to a regulated mortgage. So whilst its possible, the rub is finding a regulated BTL lender - which will req the svcs of a broker.

Speak to your lender first, see what the situation is and then consider your options.

Hope this helps

Holly