Existing buy to let impact on new residential mortgage application

marflar

Does anyone know the impact having an existing buy to let mortgage would have on a new residential mortgage application?

I was told recently that even if the property isn't let at the moment, as long as the forecast rent is 125% of the mortgage cost it isn't considered at all.

AnotherJoe

Well, if that was a mortgage broker or lender who told you that, you're OK then.

Thrugelmir

Lenders are now starting to migrate to 145%. Next year it's likely that this figure will become regulatory guidance. All due to the changing tax environment for BTL owners.

marflar

AnotherJoe wrote: »

Well, if that was a mortgage broker or lender who told you that, you're OK then.

Ironically a broker told us that it wouldn't be counted, but my partners current lender (HSBC) said that it would be

Prothet_of_Doom

Get it LET !! To not have tenants is costing you money.

I use https://www.openrent.co.uk to find tenants, and it costs me £100's less than using agents and gets me better tenants (because I get to do the viewings and get to tell the truth and get to make my own judgements)

suggest you look here for inspiration http://www.propertyinvestmentproject.co.uk/blog/landlord-advice/finding-tenant-guides-for-landlords/

Thrugelmir

marflar wrote: »

Ironically a broker told us that it wouldn't be counted, but my partners current lender (HSBC) said that it would be

Unless the property is unemcumbered i.e. mortgage free. Then due consideration has to be given. Even if the property is let there's no guarantee that the tenant will pay. If the property is empty then the burden becomes cash flow negative. With just not the mortgage to pay but all the other costs. Property letting is a business not an ATM.

marflar

Thrugelmir wrote: »

Unless the property is unemcumbered i.e. mortgage free. Then due consideration has to be given. Even if the property is let there's no guarantee that the tenant will pay. If the property is empty then the burden becomes cash flow negative. With just not the mortgage to pay but all the other costs. Property letting is a business not an ATM.

Yup - completely aware of the second point (not being an ATM).

It's soloely my partners property and we were looking for the most efficient way to get the most consideration of our salaries while applying for a new mortgage (without selling her property to delay the process as we've already a house we want to buy)

Thrugelmir

marflar wrote: »

4

It's soloely my partners property and we were looking for the most efficient way to get the most consideration of our salaries while applying for a new mortgage (without selling her property to delay the process as we've already a house we want to buy)

Then you'll incur second home stamp duty as well. Another cost to factor in.

marflar

Thrugelmir wrote: »

Then you'll incur second home stamp duty as well. Another cost to factor in.

Yup - as far as we're aware all other factors have been considered

Only looking into feedback people can give on how it impacts on a residential mortgage application ta

The broker seemed insistent that it wouldn't be considered, will feedback if i get more info