Buying a 2nd House

chipembele

Hello. I hope you can help please.

I currently live with my father and rent my home out on a buy to let. I owe 90,000 (LTV is under 70%) and by the time I want to buy another property will have been letting it for 6 years.

I plan on holding onto that and buying another property with my girlfriend.

A couple of questions

Will this other property rental money be classed as income?
Will owning this other property affect how much I can borrow on the new property?

Any help much appreciated

amnblog

Yes, it's income and you should be declaring it.

It should not affect your residential mortgage of the buy to let property covers itself.

It does potentially add 3% of the purchase price to your stamp duty land tax bill on the residential property.

chipembele

Thanks for your reply

I do declare it. I have 5 years accounts and tax returns. I'm clear about £250 a month after mortgage is paid.

Just wasn't sure if when I came to buy another I'd be met with a brick wall of "you can only borrow 20k" or something like that.

Thanks for the heads up on stamp duty