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2nd mortgage

If you have a buy to let mortgage and apply for a residential do they ask to see letting agreement etc or do they not take the BTL into consideration.
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Comments

  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    1,000 Posts Combo Breaker
    Some lenders will be happy, once verified that the existing property is let, to set that aside for calc purposes on your new residential mge.

    They may wish to see the existing lenders authority to let, and the AST to verify the let and that rental income is sufficient to svc the mge commitment.

    Other lenders, will take the existing mge as a commitmment off your income for affordability purposes, whether let or not - so if this will be an issue they naturally need to be avoided.

    Quickest route to secure the most suitable lender and attractive deal will be to spend an hour or so with a whole of market mge broker, who will have no difficulties in assisting (if the existing let property is the only issue you have), and will support you throughout the whole application process and beyond.

    Hope this helps

    Holly
  • noddynoo
    noddynoo Posts: 346 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    It is a friend they have a BTL but no tenants as they use it as a holiday home!
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Continue with fraudulent applications and they may well find themselves having holidays in places with bars on the windows, although technically an all inclusive as the food is free!
    I am a Mortgage Adviser
    You 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.
  • noddynoo
    noddynoo Posts: 346 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I thought that too but didn't want to say. AM worried for them.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    noddynoo wrote: »
    It is a friend they have a BTL but no tenants as they use it as a holiday home!

    Expensive holiday home.
  • noddynoo
    noddynoo Posts: 346 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Yes I posted that when they 1st told me. They then decided to stay put but are now going ahead
  • holly_hobby
    holly_hobby Posts: 5,363 Forumite
    1,000 Posts Combo Breaker
    noddynoo wrote: »
    It is a friend they have a BTL but no tenants as they use it as a holiday home!

    Do wish you would have included this in your initial post ... would have saved me the time & trouble of my reply !!

    Fraudulent app .. do not pass go .. go staight to B wing !!

    Seriously, if this remains as it is, and the lender finds out they could find themselves seeking another provider and a place on the CIFAS register.

    Holly
  • noddynoo
    noddynoo Posts: 346 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Sorry I had forgotten I had even asked on here before!
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    When you look in the mirror does your 'friend' look back at you?
    I am a Mortgage Adviser
    You 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.
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