Joint Mortgage With Self Employed Partner?

kingstreet

From other thread;-

Residential mortgage lenders don't want to lend money on residential rates to those wanting to start a letting business.

Therefore you will not be permitted to increase your mortgage when/if you ask for consent to let. If you were leaving the current mortgage amount the same, consent to let would be the best way to go with most lenders, as they may leave your current rate as it is.

Some do increase your rate, Nationwide for example adds 1.5%pa, while Halifax switches you to a three year fix at 6%.

That means you will have to remortgage away onto a formal LTB/BTL product with a new lender. You can borrow upto 75%, subject to rental income (rent must equal 125% of monthly mortgage interest at perhaps 6%) to repay your existing mortgage and to raise the deposit for your new residence.

You'll have to pay any early repayment penalty on any borrowing you have with your existing lender which is in a penalty period when you remortgage elsewhere.

You need a lender to ignore the let property/mortgage, as otherwise, the mortgage payment will be deducted from your income, reducing the amount you can borrow for the next property. Even worse, the amount of the mortgage may be deducted from the maximum borrowing indicated by your incomes, by some lenders. This is because some lenders assume you may have no tenant and would then have both mortgages to pay.

Taff

Thanks again Kingstreet.

Do I have to tell my current lender I am going to rent out the house I am in now?

ACG

You have to ask them - they dont all offer consent and if they do it can involve a rate rise.

Thrugelmir

Taff wrote: »

Thanks again Kingstreet.

Do I have to tell my current lender I am going to rent out the house I am in now?

If you are withdrawing money to purchase another property. Then questions will obviously arise.

If its a property to live in. Then by default you will be renting out the existing one. Which means that they can request a change of terms to agree to your proposal.

Simon_gloster

CTL > 75% are declined by lbg and the resi rate not portable if the intention is to port it and CTL simultaneously.

You really need to think this one through. Their lending policy isn't public and isn't straightforward.