Joint mortgage for main residence but partner already has 2 rental properties

LeeG85

Evening all,
This is my first post on here and I am new to mortgages etc and after some advice.
My partner and I are looking for a bigger place, she owns her own home outright but also owns 2 other properties which she rents out. These 2 she has mortgages for, but both are rented out which pays the mortgages and a bit more. They are nice flats and have never gone unoccupied.
We popped in to Nationwide today to chat to someone about a mortgage and when they put in all our details, for a joint application they would only lend us up to £60k. Yet on my own it would be £160k.
We hadn't even planned on this problem, we thought with a £170k or so deposit and only looking for a less than 50% mortgage we were in a strong position.
Is this a common theme for the banks, anyone any idea of a way round this, short of selling the 2 rental properties and effectively selling all 3. The mortgage amounts was figured into their calculations yet the rent she receives, we were told does not figure in.
The estate agent that came to value her current property nearly snapped her hand off as she can undercut the others currently on sale in the street and reckons it'd be gone by monday.

If anyone can point us in the right direction it would be appreciated

ACG

some lenders look for your incomes to cover all of your mortgage debts irrespective of incomes.

You need to find a different lender. Are the other 2 mortgages buy to lets or consent to lets or just residential mortgages with no consent to let?

Simon_gloster

The Buy to lets are crucial. Self funding calculations vary, however they much achieve 125% of the monthly payment or an 8% yield. If neither achieve, then the debts will be classed as loans and only a proportion of the renral income received used.

Before anyone rips my heart, disclaim this doesnt apply everywhere just a generalisation.

runninglea

ACG wrote: »

some lenders look for your incomes to cover all of your mortgage debts irrespective of incomes.

You need to find a different lender. Are the other 2 mortgages buy to lets or consent to lets or just residential mortgages with no consent to let?

Are there lenders out there who will lend to people with btl mortgages then. Or are they deemed to risky in this current climate?

LeeG85

They are buy to let's

ACG

runninglea wrote: »

Are there lenders out there who will lend to people with btl mortgages then. Or are they deemed to risky in this current climate?

Yes there are plenty, just a case of finding the best one for your circumstances. Have a chat with a mortgage advisor and they will be able to help.

ACG

If theyre BTLs go and see a mortgage advisor, you will most likely have options available to you.

getmore4less

LeeG85 wrote: »

The estate agent that came to value her current property nearly snapped her hand off as she can undercut the others currently on sale in the street and reckons it'd be gone by monday.

That will be a good reason to get them to drop their commision to something very low.

Wh05apk

I suspect the Nationwide salesperson/desk jockey/cashier you spoke to has given you incorrect info, from their criteria:

"Let properties are treated as self-financing where the rent received is at least 125% of the current mortgage payments.
Where let properties are mortgage free a percentage of the total monthly rent received will be treated as income.
Rent must have been received for a minimum of one month at the point the application was submitted and we will require up to date bank statements to confirm this.
A copy of the signed tenancy agreement is required."

So if you fulfill this criteria, then the other properties/mortgages are ignored, and not taken as a commitment which it looks like they have done, speak to someone else, or contact a broker (as I doubt Nationwide are the best deal?)

Dave_Ham

And so say all of us....

You just saw an someone inexperienced or who did not listen properly..

Most lenders will disregard this commitment and therefore you are in a very good position...

Find a broker as there will be better deals than Nationwide, although if you are hell bent on using them you may want to try a different advisor...

All the best