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Buy to let mortgage

jamste
jamste Posts: 1 Newbie
in Mortgages & endowments
Hi guys,

I'm looking at getting a buy to let mortgage. I have around £40k to put down as a deposit against a property that will cost around £80k so I think I will be OK in that respect.

However, I also have around £30k of credit card debt which I'm using to stooze (this isn't the deposit money).

My question is will the level of credit card debt affect my chances of getting a buy to let mortgage or should I pay it all off before applying?

My annual salary is £78k.

Thanks in advance for any help.

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Your BTL proposal will be treated differently as opposed to a residential owner occupier mortgage. Your credit card debt won't (at least it shouldn't) affect the application. The affordability is based on you earning at least £25k...putting down at least 25% as a deposit and having the proposed rent cover the interest by at least 125%. All figures are estimates but are typical.

    You'll be fine.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    jamste wrote: »
    However, I also have around £30k of credit card debt which I'm using to stooze (this isn't the deposit money).

    Any potential lender may well believe otherwise.
This discussion has been closed.
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