2nd Property

dkb

Hi
I posted on Friday about my house on consent to let and moving it to a buy to let. I'm in the process of arranging a meeting with a mortgage broker.

In the meantime.....

This is my situation. After a break up I moved to live with my parents temporarily. I'm still with them and my house is rented out.

I have two targets. 1) Get my house on long term buy to let and 2) Buy another property to live in.

Say for example I'd be £200 in credit every month on the rented property after everything is paid out (mortgage, insurance etc) and the numbers add up as regards rental income to mortgage payment (the 125% rule) Is it likely to be really difficult for me to get a mortgage to buy another house to live in?

Is there any info on how lenders treat those trying to buy a 2nd house to live in?

BigG10

dkb wrote: »

Hi
I posted on Friday about my house on consent to let and moving it to a buy to let. I'm in the process of arranging a meeting with a mortgage broker.

In the meantime.....

This is my situation. After a break up I moved to live with my parents temporarily. I'm still with them and my house is rented out.

I have two targets. 1) Get my house on long term buy to let and 2) Buy another property to live in.

Say for example I'd be £200 in credit every month on the rented property after everything is paid out (mortgage, insurance etc) and the numbers add up as regards rental income to mortgage payment (the 125% rule) Is it likely to be really difficult for me to get a mortgage to buy another house to live in?

Is there any info on how lenders treat those trying to buy a 2nd house to live in?

From my experience - currently going through this at the moment...some lenders get a bit frosty about a 2nd property in the background and some don't. Lloyds TSB ignore (who we have gone with). Santander also ignore as do the Abbey (only available through a broker). Nationwide will also accept this but will want you to prove through bank statements that the 1st property has been let out for at least a month.

I suggest you go to a mortgage broker who will be able to help you. OR ring Lloyds TSB directly.

dkb

Thanks. I guess theres no real definitive answer then, its based on who the provider is and their thoughts.

Yet another scenario to add to my conundrum.

GMS

What Loan to Value for the second property?

dkb

GMS wrote: »

What Loan to Value for the second property?

Probably 90% and the BTL 75%

Thrugelmir

Many BTL lenders require another residential property to be owned already as part of their lending criteria.

dkb

Thrugelmir wrote: »

Many BTL lenders require another residential property to be owned already as part of their lending criteria.

So I need to buy a place to live in first, then move my CTL to BTL?

They dont make it easy do they.