Residential mortgage with buy to let properties

marbles00

A quick query. Will be applying for a mortgage which will be for me to live in. Have 3 buy to let mortgages with the rent covering the mortgages. I know other factors will be taken into account but with regards to the buy to let's what will the mortgage provider want to see?

Copies of the tenant contracts, bank statements with the rent payments going in? Do they every contact your tenants to verify?

Any advice would be helpful.

HappyMJ

Nothing....generally....as long as the rent covers the mortgages then the income from them will be ignored and so will the outsanding debt you have on the properties so for your residential mortgage only your income from other sources will be taken into account along with your deposit/equity.

Simon_gloster

They need to cover the mortgage payment + 25% ontop with a notional interest rate circa 5.5%. If they calculation falls down they'll start grabbing the rental shortfall from income therefore restricting your residential lending.

kingstreet

Here's Nationwide criteria on the issue for example;-

Clients with Additional Properties

Where your client will own more than one property on completion of their new loan with Nationwide the maximum LTV is 85%. Purchase applications for these clients should be keyed as a Second Property to ensure the correct LTV limit is applied.

For information about products please see our products, loan size and maximum LTV criteria.If your client owns more than one property, we require all addresses and mortgage details.

Let properties are treated as self-financing where the rent received is at least 125% of the current mortgage payments.
Where let properties are mortgage free a percentage of the total monthly rent received will be treated as income.
Rent must have been received for a minimum of one month at the point the application was submitted and we will require up to date bank statements to confirm this.
A copy of the signed tenancy agreement is required.

If the property is covered by an accountant's certificate/2 years accounts, no tenancy agreement/bank statements are required and rental income, mortgage payments and mortgage debt for the let properties can be ignored. The net profit/director's remuneration or dividends figure should be used as income.