can i get a standard mortgage

baron777red

in june 2010 we bought a house for £113,000 and took out a 3 yr fixed mortgage from the natwest, on a let to buy basis. what happend was the house we had sold, fell through, with a few weeks to completion, so to avoid losing the house we were buying, our mortgage broker advised us to rent out our property and take out a let to buy mortgage, but at the time there were on a handful of lenders offer this type of mortgage. Which we did and it all worked out fine.

Shortly we will be coming to the end of the fixed period and i would like to remortgage, but how do we stand with having a 2nd property that we are renting out, the rental income is £495 and our mortgage on the property is costing us £360,

i have done a few online valuations of the property we intend to remortgage and they have come in at around 131,500,

will we have to find another let to buy mortgage, or can we take out a normal repayment mortgage, how do lenders view the fact that we have another mortgage,

i am thinking of fixing again for 5 or 10 years to take advantage of the low fixed rates on offer at present, and hope to get an 80% LTV, which would mean we could potentially borrow around 105,000

thanks

colin

Thrugelmir

What's the outstanding mortgage on the 1st property?

Crashandburn

Normal mortgage this time round

Lenders will need to see that the existing mortgage in the background is self financing which from your initial figures, it would seem to be.

Even if its not fully self financing, some only take a small shortfall off your income to meet their criteria.

Might be worth speaking to a broker to check through these others aspects of lenders criteria but shouldn't be anything major holding you back from a standard deal.

Good luck

baron777red

not sure of the outstanding balance of the property being rented out, borrowed 97k in aug 2005 so its probably under 90k now, but i am not considering selling or remortgaging on this property.

Thrugelmir

baron777red wrote: »

not sure of the outstanding balance of the property being rented out, borrowed 97k in aug 2005 so its probably under 90k now, but i am not considering selling or remortgaging on this property.

Will make a difference to whether you can obtain a buy to let mortgage though.

As you'll require 20% to 25% deposit.

Rental income will need to be 125% of interest at a notional rate of around 6%.

kingstreet

Ask NatWest what customer retention products they would offer you, then compare these with the offers you have available by remortgaging.

Many lenders will ignore the self-financing let property/mortgage in the background, but some do have a lower maximum loan to value, 80% or 85% for a second property.