Multiple BtL mortgages in my situation - realistic or am I being led on?

49IM

Hello. I have been assisted by a very helpful (as far as I can tell) broker who has arranged a prospective BtL mortgage for me despite my difficult situation of earning <25k. The house I'm hoping to buy is taking months to connect into the chain so nothing has actually happened yet - but I of course have every belief that the broker isn't wasting his time and mine with a mortgage he thinks I couldn't get. So far, so good.

I have enough cash to put down TWO 25% deposits on houses like this, of which there are a few for sale around here. Therefore, before this first mortgage is a done deal, I'm trying to get the ball rolling with a second one that might move faster as well, as I'd like to secure two BtLs while I have this cash.

My broker assured me that this should be no problem, HOWEVER, the only thing that's making me wary is this: the second house is for sale through his attached agency, while the first house is for sale through another. He of course knows that the first house is taking forever and it has crossed my mind that he may be hoping I'll jump ship to a different purchase through his own agency, and is reassuring me that the original purchase will still be available to me just to encourage this. And then when the time comes to attempt a second mortgage, sadly it would be declined.

Does that make sense?

IOW, mortgage experts, does it strike you as reasonable that if I could get one BtL in my situation (income too low, essentially, but deposits here + satisfactory rental income) then I could get two?

thanks,

ACG

I dont understand why you think getting one would be a problem but the second would be an issue...if anything getting the first is the most difficult.

But there are lenders who do BTLs for people earning below £25k. I have a client who is on his 3rd or 4th now. When we started working together the first was on a relatively high rate (as he also was not a homeowner) but now we have 2-3 lenders who are doing them at normal rates.

49IM

ACG wrote: »

I dont understand why you think getting one would be a problem but the second would be an issue...if anything getting the first is the most difficult.

But there are lenders who do BTLs for people earning below £25k. I have a client who is on his 3rd or 4th now. When we started working together the first was on a relatively high rate (as he also was not a homeowner) but now we have 2-3 lenders who are doing them at normal rates.

Well, I guess I thought it could mean I'm already more exposed, more in "debt", etc. - more risky. Could go either way, in my mind. In theory, yes, each mortgage is linked to that property's rental potential and has little to do with the other properties, but still.

I will go ahead and see what happens, then!
:money:

ACG

Getting the first is the most difficult if you do not fit the normal rules of BTLs. Once you have the first, you then have a few more options.

Thrugelmir

49IM wrote: »

In theory, yes, each mortgage is linked to that property's rental potential and has little to do with the other properties, but still.

The relationship is like a house built of cards. Pull away the bottom rung and the whole lot comes tumbling down. Leveraging with debt magnifies the potential upside. However likewise the downside is equally impacted. Investors tend to be overly optimistic. Better to plan for the worst. If the aim is long term.