btl

motor_bike

looking at buying another house as a buy to let, the main reason for this is for some income for retirement ( i am 42). i will be viewing a house tonight that seems to to fit the bill . just wanted to know what my options are mortgage wise.

here are a few numbers

i am self employed and can provide 3 years accounts

cost of new house will be around 75k to 80k

i will have to raise the deposit from my current house, just valued at 120k and have a small mortgage of 34k over 14 years with natwest , fixed for 3 years (£252 pm).

so, am i right in thinking that i could get an advance on my current mortgage for the 25% deposit of 19k (75k hoping) and say its for home improvements and then get a buy to let mortgage for 57k for the remainder ?.

is there any specialist buy to let lenders or any lenders that come recomended . cheers simon

kingstreet

You'll need to ask NatWest for a further advance. There's no need to lie, they are happy to lend for the deposit on a second property as long as your affordability is good.

On the BTL, you will need 25% deposit and the rent must equal or exceed mortgage interest x 125% assuming a rate of perhaps 6% per annum.

Some lenders have minumum personal income levels, so your current position will affect lender choice, as will valuation of property with some lenders having a higher minima than your prospective purchase price.

motor_bike

there is a tenant in and is paying £120 per week, £520pm. i dont know the full details yet of the tennans agreement but will be asking the questions tonight with the vendor. so, was going to put the 57k over 20 to 25 years and was hoping the btl mortgage would be sub £450 ish pm. the buy to let house is imaculate and a credit to the vendor or tennant so wont need anything spending on it (subject to survey). i have not looked at the current mortgage deals for btl's yet and may use a broker, if it helps the job along.

GMS

Many BTL lenders are broker only so seeing a broker would be beneficial.

What do your accounts show as profit for last 3 years? Many lenders have a minimum income requirement.