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How to use existing BTL properties to get a mortgage for another BTL property
Comments
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1. UK, I am a UK resident (and from EU), just not native. The properties are rented out to students.
2. Same as 1.
3. Yes, I've got a full time job as well.
What does the "up to 75%" depend on? Is this a rule of thumb or negotiable?
1. I meant do you rent or own the property you live in. Lenders prefer owner occupiers to renters for BTL mortgages.
the rent needs to cover the mortgage payments at an assumed 6% interest rate with 125% cover. Generally speaking. so if the expected rental income is £1250, the likely max mortgage is £200,000 and property value £266,600I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
1. UK, I am a UK resident (and from EU), just not native. The properties are rented out to students.
2. Same as 1.
3. Yes, I've got a full time job as well.
What does the "up to 75%" depend on? Is this a rule of thumb or negotiable?
When you say you rent to students, are these HMO properties you let out as there are different lending rules for HMO properties compared with other BTL properties?
The up to 75% will depend on factors such as income and credit history amongst other things. You might find that you are only able to borrow 60% or something.0 -
The two properties are let out to students and are indeed HMO. I rent the flat I live in.0
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The two properties are let out to students and are indeed HMO. I rent the flat I live in.
I would post on the mortgage board as there are very few if any lenders who will lend to people who don't own the property they live in. As an existing landlord there may be a lender or two who would be agreeable.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Cool, that helps. Thanks.0
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