BTL/consent to let and buying another.

seanwinf

Morning all. Im currently trying to sell our house and upsize but was considering if its possible for me to switch to BTL or consent to let either and buy another house which has come up. We have £104k mortgage and house is worth £170-180k. The new property we like is £200k. Do mortgage lenders take into account rental income on affordability. Tried reading through forums but all my answers are from years ago so dont know whats changed. (Ive read the new tax rules)

Bluebirdman_of_Alcathays

How much cash do you have available? The SDLT on a second purchase of £180k is £6500, which needs to be paid from available funds.


A mortgage adviser will be better placed to tell you what products are available, although they will also need to know what deposit, if any, you have.

seanwinf

Will be speaking to an advisor tomorrow but this idea cane up lastnight while chatting and just thought i would get abit of advice first. If im completely honest was hoping to take a little equity from my current house to cover the deposit but again didnt know if a normal deposit is required with a second home or its more of a percentage ie min 5% etc

seanwinf

Ok thats great thank you for your advice.

Pixie5740

It's a Let to Buy mortgage rather than a Buy to Let mortgage you'd be looking at although they're broadly the same thing. Max 75% LTV, rent payments need to be at least 145% of mortgage payments.

If you are considering becoming a landlord, and this will be in England or Wales read this:

Tenancies in England & Wales: Advice for Landlords & Tenants

seanwinf

Will give it a read while sat in the sun.

G_M

best place to read it...

:T

For more info:


Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?