BTL & New Mortgage Application

stu2500

Hi, me and my partner are applying for a new mortgage over the next few months. She already has a flat that we will be letting out and this will be my first mortgage. Does the BTL go against our affordability? I assume it does as if there isn't a tenant in the property at a certain time, we will have to pay the mortgage on that also. Any help to clarify this is much appreciated.

MortgageMamma

You'll be doing whats known as a let to buy mortgage.

First of all does your partner have consent to let her property from her existing (presumably residential) mortgage lender? Or does she have a buy to let mortgage on the property?

Does the rent exceed the mortgage payments by 135%? would you be able to pay both mortgages should the tenant default on their payments to your partner?

You may be wise going through a broker to do your new mortgage, as there is a certain number of things that need to be taken into consideration due to the rental property.

stu2500

Thank you for the reply. We will be going through a broker but I'm just trying to get as much understanding and information as possible.

She doesn't have consent to let as yet but will be applying for this very soon. The rental income will most probably match that of the mortgage payment and we could afford to pay both mortgages should the tenant forfeit or if there are no tenant's in the property. We aren't purchasing past our means and should have a healthy deposit. I just wasn't sure if they classed the payment for her mortgage as an expense every month.

I'm starting to realise the amount of factors due to the rental property, I only realised about the extra 3% stamp duty from information given to me on this forum.