Is a 3rd mortgage doable?

dumbrianlad

Hi folks,

Here's our situation.....can we buy a third home to live in?

-we have a BTL mortgage on a flat we rent out, £230 interest only mgage, £500 rent, worth £100k and mgage at £62k. we're leaving as is for retirement.
- we have a non-BTL mgage on ex-family home we rent out, £910 capital repayment mgage, £775 rent, worth £190k and mgage at £150k. lost £20k on what we paid for it at the moment. a thorn in the side.
- we rent elsewhere for £825 and want to buy where we now live.

income is £34000 and £17000 plus potential £3-4000 self-employed income. deposit & legal, etc we have is up to £50k.

lots of figures i know! Question is....are we under-incomed to buy a 3rd place?

Any expert/informed opinions most welcome!

Funny_old_game

The non BTL mortgage will be deducted from your borrowing potential.

Technically as long as this property will be your primary residence and your incomes are in to support the 2nd home you should be ok.

2 things to worry about. No detail if you gave consent to let, if not, potential problem. Secondly, self employed income, use the amounts you declare to HMRC on top if salaries when deciding what income to give in applications.

Thrugelmir

Why not sell the ex family home and release the equity. You've currently a non BTL mortgage on the property. A situation at some point you'll have to change. Interest rates are going to increase in the future. When they do, your highly leveraged position may not feel so comfortable.

Wh05apk

Assuming you have consent to let on your previous property, most lenders will either ignore it completely or deduct the shortfall in the rental income from you personal income to calculate affordability.
You haven't mentioned purchase price of the new property, but assuming your ages/family commitments are all ok, then I would expect a mortgage of £200k quite easily achievable.