Second mortgage

mosheba

Hi,

I bought my first flat in London 4 months ago. Flat price was £380,000. Got a mortgage for 80% with a fix rate for 2 years.
I’m considering now to buy a new flat at more or less the same price. I have 15% - 20% for deposit (out of £400,000).
My questions are:
1. If I’ll rent the first flat, I assume I can get a rent around £1500 which is the monthly repayment. Will the bank accept it? I know they are usually looking for 130%. How will they look at this situation that I bought it for living but suddenly considering to rent it (I didn’t plan it in advance)?
2. How will potential lender will evaluate my situation? (existing one mortgage and asking for another one for another property)?

Thanks,
M

Thrugelmir

Are you moving a distance away or remaining close to where you currently live?

mosheba

more or less at the same area

Wh05apk

You will need "consent to let" from your existing lender, they will normally only issue this for "genuine" reasons, such as job move, separation etc, they won't normally allow purely for investment purposes, their argument being the purchase should have been on a more expensive buy to let initially.

Your best option may be to buy the new property on a buy to let, however this will normally be restricted to 75-80% LTV max