buying a second property

want2bmortgage3

hi just a quick question. i already own a property on a residential mortgage. is it possible to buy another property with a similar mortgage? or would one of them have to be a buy to let specific mortgage?

in either case, what sort of deposit am i looking at and what is my budget? is it based on deposit, wages, rent income etc???

Jimbo1976

It depends on the reason for the second property. You may be able to get a residential mortgage if it's a "pied a terre" ie a flat near work if you live miles away, or maybe a holiday home (that won't be let out)

If you intend to rent out the second property then it would need to be a buy to let mortgage.

Typically buy to let mortgage tend to be around 75% loan to value (it is sometimes possible to borrow more than this but only occasionally). The amount that a lender will allow is based on the rental the property will generate rather than your income (though most lenders do want you to have a reasonable personal income).

Normally there needs to be 125% rental cover so the rental over the year needs to be 1.25 times the annual mortgage payment (on an interest only basis)