Second mortgage question

ados

Hi,

I am interested in buying a house and would like advice on getting a mortgage for this.

I would be looking for a house with value of about £160,000 and I have £40,000 deposit. I am in full time employment with an annual salary of £44,000 + extras.

I already have a mortgage on another house which I currently rent out. There is a relatively small proportion of that mortgage outstanding (about £ 23,000, term=4 years 6 months), and the rent (£530) more than covers the monthly payments (£423). I have no other loans. The mortgage on that property is not a Buy-To-Let mortgage, it's the original mortgage from when I was living in that house (I'm not sure if this makes a difference, but I suspect it might).

My wife and I currently rent our home and we'd now like to buy somewhere for us to live, whilst continuing to rent out my other house.

I'm wondering whether it would be possible to get a mortgage for this purchase? Or would the fact that I already have a mortgage outstanding on another property be a big hindrance?

Thanks in advance for any useful advice!

ados

kingstreet

There are plenty of lenders who will allow you to purchase another residence while letting a property. Shop around or contact an independent or whole market broker for help.

Some lenders tax you the monthly payments of the existing mortgage, while others will ignore a self-funding BTL "in the background."

The new lender will not care if the current mortgage is a buy to let, or a residential mortgage with consent to let.

Thrugelmir

ados wrote: »

and the rent (£530) more than covers the monthly payments (£423). The mortgage on that property is not a Buy-To-Let mortgage, it's the original mortgage from when I was living in that house (I'm not sure if this makes a difference, but I suspect it might).

Are you declaring the income for tax ? Capital repayments are not tax deductible.

Do you have permission to let from your current lender?