Converting to BTL so I can buy another house?

zag2me

Morning all,

The girlfriend has informed me she wants to buy a large house together, and this seems like a good idea to me. We both own our own flats with 50% of the mortgages paid off so I would like to look into Buy To Letting the flats. We also both have large deposits for a new place from separate funds.

First of all is this possible? We currently live in one of the flats.

Can I buy another property once the flats are on a BTL mortgage?

Will the buy to let flats count in favour or our new mortgage? a quick look at online calculators shows I should make about £750 a month from the rental after considering all the costs.

Pixie5740

You can apply for Let to Buy mortgages (up to 75% LTV) on your current properties to release some equity. Probably best you speak with a mortgage broker about your requirements.

Also see NEW LANDLORDS.

G_M

* New landlords: advice, information & links


From:
Tenancies in Eng/Wales: Guides for landlords and tenants

Cornucopia

zag2me wrote: »

Morning all,

The girlfriend has informed me she wants to buy a large house together, and this seems like a good idea to me. We both own our own flats with 50% of the mortgages paid off so I would like to look into Buy To Letting the flats. We also both have large deposits for a new place from separate funds.

First of all is this possible? We currently live in one of the flats.

Yes. Have a look at Let-to-Buy. This might be a slightly more limited range of mortgage products, but it will be more flexible when you come to move out.

Can I buy another property once the flats are on a BTL mortgage?

Yes.

Will the buy to let flats count in favour or our new mortgage? a quick look at online calculators shows I should make about £750 a month from the rental after considering all the costs.

Generally no. The extra income is yours to use, but banks won't allow it for salary multiples AFAIK.

For this reason, you may want to raise equity from your Letting properties to build up a bigger deposit for you property to live in.

westminstergirl

Yes, all this is do-able. I converted my flat from a residential mortgage to buy to let 2 1/2 years ago.

I seem to recall that I had to have a residential mortgage in place in order to do so. Sooo, I think i sought approval for the mortgage on my current property (house) and once this was sorted, applied for the buy to let, I believe at the time it was 75% ltv. All worked out fine and my flat has been rented out since the day I moved out.

dimbo61

If you live in one of the flats can you find a good broker and take a BTL mortgage out on the other?
Rent that out and you have more money for a deposit.
Find next property for you and your G/F and then remortgage second flat onto BTL and release equity from that.
Good idea to look at Offset mortgages for your own home.

zag2me

Thanks everyone, glad to know its possible.

Spent 30mins on the phone to halifax this morning and none of them could answer my questions!