CTL and buying 2nd Property - Broker only job?

ibz75

I have been granted CTL and currently living in rented accomodation in another town, whilst searching for a house to buy.

Would I be better off speaking to a broker, or can I approach high street lenders myself?

Any advice on how best to approach this? And how do most lenders consider a CTL property when deciding on affordability?

CTL Property:
Mortgage - £81000 (Repayment / 18% LTV)
Monthly Cost - £438
Rent - £500 ( 150% Interest Only)

2nd Property:
Price - £80k
Deposit - £20k
LTV - 75%

Me:
Salary - 26k
Debts - 9k (Unsecured Loan)

Thanks.

kingstreet

It's up to you.

Many lenders ignore a self-financing let property/mortgage in the background and don't tax your affordability with the mortgage payment.

The loan to value of the purchase is also acceptable to most, if not all, lenders for a second property.

ibz75

kingstreet wrote: »

It's up to you.

Many lenders ignore a self-financing let property/mortgage in the background and don't tax your affordability with the mortgage payment.

The loan to value of the purchase is also acceptable to most, if not all, lenders for a second property.

Thanks Kingstreet.

The only problem is which lenders? I guess my real question was whether a broker is in a much better position to say 'apply to A,B & C but avoid X,Y,Z'

I was thinking of Nationwide, Woolwich and Santander ? ?

kingstreet

I'd say, find yourself the best deals of the type you prefer, make a list of the lenders, then contact them one by one to see if they will accept the let property in the background.

You'll end up with one from the list, hopefully fairly close to the top, if you're lucky. I would expect a broker to do exactly the same thing, as we are bound to get you the best deal we can.