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Mortgage Query - BTL + Residential
lynzdunk
Posts: 1 Newbie
Any advice greatly appreciated....
Me and my partner both have our own properties with substantial equity in both. Mine is currently on a buy to let mortgage and rented out via an agency.
We are now looking to buy a new property together and wondering whether we can rent out his property too via a buy to let mortgage and then get a brand new joint mortgage for the new one.
If both existing properties are on BTL mortgages and in long term leases will the banks take this debt into account when measuring us for the new one or is this not included as the rental income will cover this and plenty more?
Property 1 BTL Mortgage 60k - Value £135k - Rent 650pm
Property 2 BTL Mortgage 30k - Value £170k - Rent 750pm
Combined annual income of 90k means that without above we could be able to borrow up to around £280k if we had a reasonable deposit to put down, which we do, but would this reduce because of the other properties?
Many thanks
Me and my partner both have our own properties with substantial equity in both. Mine is currently on a buy to let mortgage and rented out via an agency.
We are now looking to buy a new property together and wondering whether we can rent out his property too via a buy to let mortgage and then get a brand new joint mortgage for the new one.
If both existing properties are on BTL mortgages and in long term leases will the banks take this debt into account when measuring us for the new one or is this not included as the rental income will cover this and plenty more?
Property 1 BTL Mortgage 60k - Value £135k - Rent 650pm
Property 2 BTL Mortgage 30k - Value £170k - Rent 750pm
Combined annual income of 90k means that without above we could be able to borrow up to around £280k if we had a reasonable deposit to put down, which we do, but would this reduce because of the other properties?
Many thanks
0
Comments
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Some lenders don't like other properties and mortgages, others ignore let properties in the background, as long as they are let and the rental incomes and loan to value figures are okay.
You need to make sure you get one of the latter.
Be careful with the loan to value of the new purchase. Some lenders limit, for example Nationwide, at 85%.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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