BTL/Second home Advice

Sparta1983

Hi..my first post so hope am not asking too much in my question..

I currently am a homeowner of a house that i bought for 210000. I have a mortgage of 150000 on this house. When i bought the house it was in a bad way and is now probably worth in the region of 230000. The mortgage deal ends in december...

I have moved jobs so i am looking to buy a second home in the region of 180000. I have a deposit of £20000. However i want to keep my current house and rent it out.

What are my options in regards to mortgages? I know i cant have two residential mortgages and one will have to be a BTL..but need some guidance as to what deals may be available to me as i am struggling to find many BTL deals

Thanks in advance for any help

GMS

You could ask your current lender for Consent to Let. They may or may not grant this and if they do it is likely to be for a set period. They may also look to load your rate.

If your rate is a good one you could consider porting it to the new property if the lender will allow.

You coudl also look at a remortgage to a Buy to Let and raise a bit more from this for a deposit for the new purchase.

Rental income would need to cover the mortgage plus 25% usually.

Best thing to do is have a chat with a broker to figure out the best way.

Sparta1983

GMS thanks for you post..


just out of interest if my lender gave me consent to let on my current mortgage would that then mean i could go and get another residential mortgage? and if so is this something that is easy to do or would other lenders be wary of giving someone another residential mortgage?

GMS

With consent to let your mortgage you could apply for a new residential mortgage with the consent to let mortgage being ignored as a commitment with most lenders.

You need to look at the whole picture. Would releasing equity from the first enable you to get a better rate for the new purchase?

Is your current rate worth keeping if you can?

With a 20k deposit you would be looking at a 90% product. 85% rates tend to be less with rates getting better with further deposit.