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Second mortgage
Irvhud
Posts: 12 Forumite
Hi ,
I own a flat which I have been trying to sell but can't in the current climate.
My wife and I are living in a rented house short term while we find a new house to buy.
My question is if I try to rent out my flat does it matter if it is rented or not at the time of applying for a second mortgage, ie does it have a bearing on the affordability of the second mortgage ?
Thanks for any help
I own a flat which I have been trying to sell but can't in the current climate.
My wife and I are living in a rented house short term while we find a new house to buy.
My question is if I try to rent out my flat does it matter if it is rented or not at the time of applying for a second mortgage, ie does it have a bearing on the affordability of the second mortgage ?
Thanks for any help
0
Comments
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Does the flat have a mortgage on it?I am a Mortgage AdviserYou 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.0
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Do you have consent to let on the flat? Some lenders will require this.
The rent would need to cover the mortgage by 125% (generally) in order to be disregarded for affordability.
The new purchase may be restricted on Loan to Value as you would already have a property.
What percentage deposit do you have?I am a Mortgage AdviserYou 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.0 -
I have asked for CTL and they have sent me a form to fill in.
If I set the rent at 125% of the mortgage payments will this be ok regardless if whether I have a tenent at the time of applying? Assuming of course this is the going rate for rent in the area.
We have 15% depositi0 -
If no tenant in then you may find you need an ARLA letter from a locally registered agent stating the rental income.
Some lenders will want to see the rent on a bank statement.
Be careful at 85% LTV as not all lenders will allow.
A broker may be worth a chat to see how to proceed.I am a Mortgage AdviserYou 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.0
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