Applying for Buy To Let and Residential Mortgage at Same Time

gazfocus

Following on from this thread really: https://forums.moneysavingexpert.com/discussion/4849974

I have been notified by my housing association that I cannot rent out my shared ownership house unless I have tried to sell the house first (they have suggested 3 months on the market).

With that in mind, if I were to apply for a Buy-To-Let mortgage to buy out the rest of the house, what are the chances of that being approved at the same time as a Residential Mortgage on another house? If doing this, will the lender of the Residential Mortgage still ignore the Buy-To-Let Mortgage as Self-Financing?

gazfocus

Any thoughts on this?

ACG

I cant comment on the shared ownership aspect but the idea of getting a BTL and residential mortgage at the same time is fine.

silvercar

We did this (a few years ago if that makes a difference) and the residential mortgage lender wasn't even interested that we were also applying for a BTL mortgage elsewhere.

The BTL lender was only interested in the rent covering the mortgage payments etc

So really they didn't impact on each other.

kingstreet

Just done a BTL remortgage and a residential second property purchase. BTL was with TMW and residential Nationwide.

We didn't need the rental income, so all we had to do was upload the TMW offer to the Nationwide case when it was issued.

gazfocus

Thanks Kingstreet. We won't need the rental income to be taken into account for the residential mortgage so hopefully both can go seperately.

We have had a valuer from an estate agents come round this morning and he pretty much confirmed what we were thinking in terms of sale/rental valuations. He also said he'd expect our house to be tenanted within a couple of weeks of being on the market due to the spec.

My only concern with the BTL mortgage is the maximum 75% LTV. We could raise this but it would take us about 2 months, so I have another question....

Could we apply for a new residential mortgage on another house now, based on renting out our current house, then apply for the BTL mortgage when we have the 25% deposit (which would still likely be before completion on the new house), or would we need to do the 2 mortgages together?

The plan is to staircase to 100% ownership on the current house with a BTL repayment mortgage, but obviously, we won't be marketing the house until we have exchanged contracts on the new house.

Keekles

Effectively you'd be applying for a Let to Buy (i.e. letting out your current residential in order to buy a property elsewhere).

Unfortunately I'm not how this affects shared ownership although I'm sure someone will have dealt with a similar situation previously.

gazfocus

Keekles wrote: »

Effectively you'd be applying for a Let to Buy (i.e. letting out your current residential in order to buy a property elsewhere).

Unfortunately I'm not how this affects shared ownership although I'm sure someone will have dealt with a similar situation previously.

Well yes, but it's still a Buy-To-Let mortgage, but my question was, do I need to apply for the Buy-To-Let mortgage at the same time as my new residential mortgage or can I apply for the Buy-To-Let after?

silvercar

gazfocus wrote: »

Well yes, but it's still a Buy-To-Let mortgage, but my question was, do I need to apply for the Buy-To-Let mortgage at the same time as my new residential mortgage or can I apply for the Buy-To-Let after?

I did the resi mortgage first. Then when we applied for the BTL (before we completed on the resi), I phoned the resi mortgage lender and asked if they needed to be informed, they weren't interested and said it was irrelevant. This was a few years ago, so maybe things have changed or maybe that was just one lender's position.

unhappy_shopper

We applied for the BTL mortgage first and we were planning to apply for a residential mortgage after releasing some of the equity from our previous home. But things dragged on and the BTL mortgage application was rejected due to L&C's incompetencies. So we applied for both residential and BTL mortgages simultaneously with 2 separate lenders, with both being informed about the other application. Glad to say that we have received both offers :T - completed on one and waiting for exchanging on the other one in a few days.