Buying another property - advice please

Jox

Can I have some advice or thoughts please?

I live in my one bed flat with my partner (bought in 2005 for £143k, £20k deposit, outstanding is £107k, 2.5% mortgage)

I earn approx £35k plus £5k bonus per year, partner about £15k per year.

I would like to buy another property, we have about £30k saved up. Will probably want to rent my current flat or the property we buy to a family member.

Should I go to my current mortgage provider to ask them if this is feasible and how much they would lend me or should I go to a broker.

I don’t know what sort of property I could buy until I find out how much I could borrow. A one bed in my area is around £150k.

Thanks

Wh05apk

You will need to get "consent to let" from your existing lender, however, few lenders will allow rental to family members. Assuming you rent to non family, most new lenders will disregard your existing mortgage as a commitment, meaning you effectively start again as a new purchaser (some lenders insist that your property is rented for a period before they will dis-regard it, so obviously they could not be used for the new purchase)

Assuming he rent covered the mortgage cost (usually + a margin of 20-25%) then I would expect you to be able to get a mortgage of £200k+

Jox

Thanks so much Who05apk, I appreciate your reply.

It would probably be best to keep my existing flat at the current rate as 2.5% is great and purchase a BTL.

As you can tell, I'm a novice so would you think that I should go direct to my current mortgage provider and ask their advice or a broker would be best (or both options)?

dimbo61

So what are your long term plans ?
Stay in the one bedroom flat ! and get rich from renting out another one bed flat????
What happens if you need a bigger property, KIDS!!
Consent to let is not long term and your lender may turn round in 12/24 months and ask you to change to BTL if you rent out your current flat and move to a bigger place.
You have no problem paying one mortgage at 2.5% but do you fancy paying for TWO mortgages if the rental place is empty.
This is a business you are taking on with BTL and being a Landlord and you need to do your research

Jox

Thanks for your input dimbo