Mortgage Advice - Buy to let???

PUD

Hi All,

Firstly thanks for reading this and any advice you may have for me

I would like some information on how me and my boyfriend would go about the below situation please!

My boyfriend bought his 2 bedroom flat 2 years ago for £120k and placed a £12k deposit. I cant remember all of his rates etc off the top of my head unfortunately. But basically we would like to buy and home together and rent out the flat. Our joint income is £60k. I am aiming to raise at least a £10k deposit to build into this.

Does anyone know if this will be possible for us or do we not earn enough for two mortgages?

His current mortgage is with Halifax and we plan to meet with them to discuss the options.

We are looking at this happening in say a years time so no major rush but we would like to know if this is at all viable or if we are getting totally ahead of ourselves.

Thank you in advance!
C x

holly_hobby

If you obtain consent to let on the flat, and the property is self sufficient re rental income - there are various lenders that will put the mge commitment on the flat to one side, and exclude it from the affordability calc made for your primary residence application (technically such arrangements are referred to as a "let to buy" mortgage, but some lenders who consider such business, don't actively market under this title).

Flat to be let - You should also be aware that the mge pay rate on the flat once let, will incur a loading of circa 1% (as this is essentially now semi commercial lending), there will probably be a lender admin fee, and the CTL arrangement will be reviewed (with usually a 3 yr max period under CTL arrangement).

Once CTL facility is revoked (and you wish to continue letting) you will need to move the mge onto a traditional Buy To Let arrangement, with either the same lender or via a remortgage to an alternative provider.

Hope this helps

Holly