What affect does my other mortgage have?

louiserer

Good Morning,

The mortgage adviser at our bank has given us an idea of what they are prepared to lend. At the time they only seemed to take limited information. I explained as it stands my husband and I own a property each, mine is rented to a long term tenant and we live in his. We plan to sell the house we live in and buy our next house together.

I was asked our ages and incomes and an indication of our outgoings. I explained that out of the equity we have in the current house we would clear a debt. I was given a figure of what they would be looking to lend us.

We have been using this figure to look around and think ahead of what to do next but all of a sudden yesterday I started thinking that shouldn't my mortgage on the rental property have an affect on this? Nothing was mentioned even though I did outline this and explain properly.

Thank you,

Louiser

amnblog

It depends on the proposed new lender concerned.

lou2003uk

Im in the same position as you have a house i rent and live in my partners . but were not selling my partners we plan to rent that out also.

weve bought a new house and were just awaiting the mortgage decision due today.

i think it depends on your deposit i think the bigger the deposit the better wewere told we would have to put down a minimum deposit of 15% with natwest.

no other lender would consider us untill both propertys were rented

louiserer

This was halifax.

We are hoping to have between 20-25% deposit.

Thank you for your replies

amnblog

Plenty of other lenders would consider you with the current home still to be rented.

lou2003uk

amnblog wrote: »

Plenty of other lenders would consider you with the current home still to be rented.

with one home we were told they would but not with two one thats not currently rented yet. they wanted proof oif the income from both first.

depends how much youve got on the other houses i think aswell for example if you already have a 200k mortgage on one house thats alot.

lou2003uk

louiserer wrote: »

This was halifax.

We are hoping to have between 20-25% deposit.

Thank you for your replies

i think with just one house already rented and thst deposit you would be fine then :-)

louiserer

Thank you

I think my main concern was that we have been given a estimated figure to work with, I'll fall in love with something within that price range only to get further down the line and find out we are not to be lent that figure at all!


There is only a small amount of equity in the rental. The mortgage maybe around £75k and the house worth max £85k. There was not enough equity for them to let me have a BTL mortgage but they put a consent to let on there and hiked the rate up for me!

amnblog

Some lenders when considering your new lending will apply the whole of the consent to let mortgage payment against your affordability if you do not have 25% equity.

Borrowers with mortgages in the background are best advised to use a broker rather than going direct as there are many ways to trip up if you use the wrong lender.

louiserer

I will remain positive without getting my hopes all the way up then. Thank you

louiserer

Just wondering if anyone knows if we would be eligible for help to buy? I am sure someone said we can't if we are keeping our other property?

If we were able to use help to buy, are you able to start paying this back straight away?