About to look for new mortgage..

supersonicdave

Hi All

I'm about to look for a new mortgage for a property I'm hoping of buying for £165k. I have a 10% deposit.

I'm also the joint owner of a flat which is rented out to a tenant, and which has a BTL mortgage. My 50% of the rental income is £225, and my 50% of the (interest only) BTL mortgage is £78. Is there anything in particular that I need to do with regards to this BTL mortgage, when looking for a new second property mortgage?

Thanks
SD

GMS

First thing you need to ensure is that any prospective lender will be happy with a 90% mortgage on a second property.

Thrugelmir

May be worth considering whether you'd get a better return by injecting the equity into your new property. With a lower LTV far better rates would be accessible.

supersonicdave

GMS wrote: »

First thing you need to ensure is that any prospective lender will be happy with a 90% mortgage on a second property.

Is this something which is particularly exceptional? I'd like to get an idea of where I stand before I look at mortgages in more detail.

kingstreet

It varies from lender to lender.

Off the top of my head, Nationwide's limit is 85%.