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Is a 80% LTV BTL possible?
blackdogonline
Posts: 19 Forumite
We are looking to switch our current mortgage which has consent to let to a BTL mortgage so we can buy another property where we are living now. The house is worth £150,000 and we owe £120,000. The property has been successfully let now for 3 years at £700pm. Can anyone give any advice on whether we are likely to be eligible for a BTL mortage. Thanks 
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Comments
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Possible but not probable.
Will your existing lender not consider consent to let for a further time as this is likely to be a much cheaper option.
Good luckI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
So long as the rent is 125% of the new payments then there are a couple of options available. This is probably one of those where you may need to speak to a mortgage advisor.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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What income(s) do you have?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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£60K joint income. We've been told we can't have another mortgage whilst we've got CTL as it's only given for 1 year at a time so no long-term guarantee.0
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Bad advice given - you can get another mortgage with a consent to let - guaranteed...I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Bad advice given - you can get another mortgage with a consent to let - guaranteed...
We couldn't afford to pay our £1022pm mortgage payments and another mortgage if the £700pm rental income stopped. We're looking at spending £230K on next house, with 15% deposit, so it wouldn't be sensible to have two mortgages expecially as we can't extend the term on our current mortgage to lower the monthly payments because we have CTL.
Thank you everyone who has replied. Can't believe how complicated it is, we would sell but NOTHING has sold in the past 2 years on our estate, even at some give-away prices, and can't afford to keep it on the market without rental income coming in.0 -
Firstly, the rent can be used to mitigate the some of the mortgage payment and therefore you will not be tested on "affordability" on the 2 mortgages.
If you will get consent to let granted again, this is a no brainer vs going down an expensive buy to let route or let to buy in this case.
Some rental firms will guarantee rental income and whilst they may only guarantee £650 or £670, it does afford some security for you.
On £60k joint, having just done some quick number crunching depending upon age this should be achievable.
Good luckI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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