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Can i buy a new house and keep my BTL's?
PhotoMania
Posts: 23 Forumite
I currently have a 50% mortgage in the house I currently live in, and I have a 50% mortgage on a buy to let house. I would like to move house soon so I was wondering if I could keep both houses, get a buy to let on my current house and get a new mortgage for a new house?
I would increase both BTL mortgages to 75% to release enough equity for a good deposit on a new house. How would this work with a lender calculating how much they would be willing to lend to me? Also, would having several credit checks at the same time affect the likelihood of me getting a new mortgage?
I need to remortgage the BTL soon anyway as I have come to the end of my current deal.
My husband and I work full time and both earn a good wage. If we sold both currently owned properties I know we could get a new house no problem, but I would really like to keep the two houses we currently have as an investment.
Thank you in advance.
I would increase both BTL mortgages to 75% to release enough equity for a good deposit on a new house. How would this work with a lender calculating how much they would be willing to lend to me? Also, would having several credit checks at the same time affect the likelihood of me getting a new mortgage?
I need to remortgage the BTL soon anyway as I have come to the end of my current deal.
My husband and I work full time and both earn a good wage. If we sold both currently owned properties I know we could get a new house no problem, but I would really like to keep the two houses we currently have as an investment.
Thank you in advance.
2010 MFW no:92 :rolleyes:
Mortgage when started (March 2006): £144,500
Mortgage free day: March 2019
Mortgage when started (March 2006): £144,500
Mortgage free day: March 2019
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Comments
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Yes you can, but the other mortgages will affect your mortgage options for the new property.
One for a mortgage broker unless you want to trip up.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you amnblog.
I thought it would be a bit complicated. Do you mean the amount we can borrow would be reduced then? If I used the online calculators we can afford what I would like to spend on a house, but that doesn't take the other two houses into consideration.
Thanks!2010 MFW no:92 :rolleyes:
Mortgage when started (March 2006): £144,500
Mortgage free day: March 20190 -
Without the other two properties taken into consideration, any such affordability calculations are pointless.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
How lenders treat properties in the background varies widely.
This will have both affordability and maximum loan to value implications, which is why the broker suggestion is a very good one.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I see, that makes it clear then. I will see an advisor/ broker before we do anything with any of the mortgages then. I feel a bit like a hoarder but I just don't want to sell any of them if I don't have to!!
Thank you all for your advice. 2010 MFW no:92 :rolleyes:
Mortgage when started (March 2006): £144,500
Mortgage free day: March 20190 -
Here are some of the criteria issues (from various lenders) you can come up against in this circumstance:
You need to let your current home first for 6 months or the mortgage will be considered outgoings
Maximum LTV on properties 75%
If rent does not wash at 125% of pay rate the mortgage payments comes off the affordability calculation
Needs to be rented 3 years to be considered self funding
Total lending cannot exceed 8 X income
Stress test
Two proofs of rental potential required
ARLA proof of rental required
Permission to let, required
Permission to let not required
BTl mortgage only accepted
Hence the suggestion to use a broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Some lenders may not like the source of the funds for the new property.0
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