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Quick Question about Buy to Lets and Personal Mortgages
JPMcQueen
Posts: 19 Forumite
Hi, I have an appointment booked with an independent advisor but thats not for a few weeks and I have a quick question.
When calculating a personal mortgage, do they take in to account any buy to lets in calculating the amount you'd be able to borrow i.e. covering the B2L mortgage costs if the property was empty?
My partner and I are looking to buy a property together as our main home but we both have lets from the houses we had before we got together (we've been renting a joint property).
When calculating a personal mortgage, do they take in to account any buy to lets in calculating the amount you'd be able to borrow i.e. covering the B2L mortgage costs if the property was empty?
My partner and I are looking to buy a property together as our main home but we both have lets from the houses we had before we got together (we've been renting a joint property).
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Comments
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Probably - the new mortgage affordability rules take into account all income and outgoings. You might get a better response on the mortgage board.
Have you also factored in the extra 3%SDLT?0 -
Unfortunately yes.0
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They will definitely want to know that the BTL at least pays its own way.
They are not going to assume that the property is never let - otherwise anyone with a fleet of properties would ever be able to get a residential mortgage.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
That was pretty much my thinking too but wanted to be certain.0
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Hi, I have an appointment booked with an independent advisor but thats not for a few weeks and I have a quick question.
When calculating a personal mortgage, do they take in to account any buy to lets in calculating the amount you'd be able to borrow i.e. covering the B2L mortgage costs if the property was empty?
My partner and I are looking to buy a property together as our main home but we both have lets from the houses we had before we got together (we've been renting a joint property).
Normally a new BTL mortgage would only be approved if the proposed rent covers the interest charged plus a percentage to cover repairs and maintenance so it won't make any difference to a mortgage application on a property you are about to buy. If the proposed rent was significantly higher than the actual rent achieved then you might find you have a negative cash flow and your affordability may be affected.
If the property you have is currently empty only due to the fact it's between tenancies and you just happen to be in a void they can use the rent received the last time it was let in the affordability calculation.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0
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