BTL mortgage to raise deposit for a second home

123123

Thanks for the replies. So it sounds feasible that we could have two mortgages at the same time.

I shall talk to a broker about LTB mortgage plans. What info would he/she need? Maybe a letter from estate agent confirming potential rental value? Would a let need to be agreed and tenants found before LTB mortgage funds are released?

I'm aware of the risks tenants can be. Wear and tear does happen. I know stories of locks changed by tenants and having to wait months for court eviction, or a landlord called by police who had to bust down door to arrest drug dealing tenants. Pre-letting checks can help reduce the risks, but they do always exist.

The back up plans for an absolute emergency, i.e. no rental income or job loss, would be to sell up either property or move in with parents. I'd be confident of a sale if the price is pitched correctly for the market at the time, which I accept may be lower than current value if there is a general price fall.

kingstreet

123123 wrote: »

Thanks for the replies. So it sounds feasible that we could have two mortgages at the same time.

I shall talk to a broker about LTB mortgage plans. What info would he/she need? Maybe a letter from estate agent confirming potential rental value? Would a let need to be agreed and tenants found before LTB mortgage funds are released?

Yes to two mortgages. You can have as many as you can afford.

Let your broker place the case before running off getting stuff that may not be acceptable to the lender. A reasonable estimate of the rental income is all that's needed now.

You do not have to let the property before the remortgage funds are released. That would not be workable.

Cornucopia

Indeed. In my experience, LTB was very easy and did not involve any scrutiny by the lender post-completion, at all.