How many mortgages can I have?

josephramsden

Hi,

I'm looking for some information and/or advice. I currently have a house worth roughly £125,000 with no mortgage. I have tenants in there and I want to know if it's possible to remortgage the house, taking £100,000 out and putting £50,000 on a house to live in (worth roughly £200,000) and £50,000 on another property to rent out (worth roughly £170,000). Basically, would a bank let me do that? I'm a teacher and earn £32,000 per year and have rental income of £11,000 on top of that.

Thanks in advance,

Joe

anselld

LTV on BTL mortgages is normally 75% max so that would only allow you to take just under £94k. Lenders are all different on affordability calculations and other criteria, some don't lend unless you already have a residential mortgage elsewhere. You would be best to use a broker.

The future purchases will again be subject to various affordability and other criteria. Bear in mind you will be paying the 3% SDLT surcharge on both proposed new purchases so that will eat a fair chunk of your deposits.

amnblog

Yes, you can do this Joe, but there are a number of tricky aspects depending on the lender(s) you use.

Therefore, a Broker is your best source for this type of set up.

Thrugelmir

josephramsden wrote: »

have rental income of £11,000 on top of that.

Only if the property is let and the tenant is paying you. If the property is empty or the tenant isn't paying you. Then you have a considerable outgoing to fund.

Normal practice is therefore only to include income from unencumbered property, i.e. debt free.