BTL confusion

Southernman

I currently have a residential mortgage in my sole name. It is around the £70k mark. In a few years I'm considering changing it to BTL by which time my mortgage should have dropped to £60k with overpayments . Rental atm is roughly £900pm for my apartment so I will easily meet the 125% rental income expected with my mortgage payment even on a higher BTL mortgage percentage

What I would like to do is get a joint mortgage with my partner and rent off my property. My only concern is as I will technically be in £60k debt will this impact affordability for a residential mortgage or is it separate as it is deemed an investment property?

If a joint mortgage is £150k do I minus the £60k from the total due to existing mortgage debt?

A summary of my finances is that I currently have a mortgage of £70k my property value is £190k, I have no other debts, two credit cards I use and pay off in full each month, my wage is currently £20k and I'm 25 years old

Thanks in advance for your help

tvfreek

Technically you will need to switch to a buy to let when you take out the new residential mortgage. You can't have 2. I'm presuming you have the lenders consent to let the residential mortgaged property, Some lenders will discount for affordability others will expect the rental lt to cover the mortgage payment by a certain amount otherwise it becomes a liability.

A good broker would advise which way would be best.

dimbo61

You really need to employ a whole of market mortgage broker who deals in BTL mortgages.
You need to see if the figures stack up about becoming a Landlord.
You maybe able to take equity out of the flat to put down a Larger deposit on your new home

Thrugelmir

Southernman wrote: »

If a joint mortgage is £150k do I minus the £60k from the total due to existing mortgage debt?

Could you afford to service £210k of debt?