Applying for residential mortgage with existing buy to let's

marbles00

Does anyone know what the standard requirement is when applying for a residential mortgage but have 2 existing buy to let's. These buy to let's will remain but will the mortgage company want to see how much rent I get. Will the rent need to be more than the mortgage (it is) but by how much?

Any advice would be helpful.

Thank you.

Cazza

Exact criteria will vary a great deal between lenders so best to ask for their specific requirements before doing any applications or credit searches at all. A rule of thumb is around 125% coverage.

kingstreet

Many lenders will ignore one self-funding BTL in the background, but not two.

If both can be ignored, chances are they will expect the rent to be 125% of the monthly mortgage payment, sometimes only the interest-only payment, at a rate upto 6% per annum.

You'll more than likely face an LTV restriction on the mortgage for the purchase, with a lender topping out at perhaps 80% of the purchase price, maybe less.

holly_hobby

Yep, agree with Kings, in todays market, the residential lender will look at the overall exposure you have mge wise, and may well factor them in on the affordability assessment.

Only sitting with broker and they having a chat with their contacts and BDMs will you know what the terms of advance will be.

Hope this helps

Holly

marbles00

I have AIP which was given 2 weeks ago. At the point of application it was referred directly to the underwriters and they came back and asked about the buy to let's and i provided info over the phone.

When I got the AIP in the post they asked for last 2 wage slips and P60 which I have sent. So yesterday they called and took payment for the admin fee and valuation/survey so that's happening. And then today they called and asked for copies of the tenancies and proof they are buy to let mortgages.

Is this normal procedure, just a bit concerned?

holly_hobby

Sounds fine ....

Cazza

Not unusual at all, they're just asking for paperwork to back up what you're told them. No reason to be concerned as long as it all corresponds to what you've told them already. It's a little disorganised, they could have asked for it with the payslips and P60 but that's underwriters and admin for you.....

Thrugelmir

marbles00 wrote: »

Is this normal procedure, just a bit concerned?

Having 2 BTL properties could materially impact your finances.

Such as if both were empty at the same time.