Rent out existing house with consent to let - which lender for mortgage on new house?

michaels

My existing lender has granted me consent to let. I now want to get a residential mortgage on a new property. I just approached Coventry but they said they could not offer a second residential mortgage to someone who already has one. Ideally I am looking for a new mortgage that has no tie in/ERC.

Thanks for any suggestions

kingstreet

TBH it will depend on loan to value and the usual other issues. You do need to be careful, as some lenders offer a lower maximum when it's for a second property, although they may ignore the let property in the background, as long as it's self-financing.

R34GTT

I'm in the same position so would be interested to know too.

My research so far (internet and via colleagues) suggest only a handful of lenders will be willing to ignore the rented house as long as it is self financing.

I believe Abbey is one (I think that is only available via a broker). It would be useful to know of others who've gone down this route and hear their experiences. Certainly the residential mortgages usually offer more favourable rates and larger LTV.

michaels

kingstreet wrote: »

TBH it will depend on loan to value and the usual other issues. You do need to be careful, as some lenders offer a lower maximum when it's for a second property, although they may ignore the let property in the background, as long as it's self-financing.

Existing mortgage is 500pcm io 40%ltv 3/75x income, rental will be about 2500pcm. New mortgage will be less than 60% ltv but ideally as high an income multiple as possible...

Dave_Ham

I think you need to have a view on rate/product vs the optimum amount you want to borrow. Some lenders are more flexible than others and therefore best to have a plan.

Looking at the numbers involved and potential savings, it may be worthwhile engaging a broker.

Whilst the best deals are direct only, with a consent to let in the background this will be a huge consideration.

All the best