Mortgage / buy to let advice urgently needed!!

Thrugelmir

McDizzle wrote: »

If you can evidence that the rental income you receive from the BTL property more than covers the running costs of that property (insurance, mortgage & general bills) then they wont be taken into account as expenditure and wont impact the affordability on your residential mortgage for some lenders.

For affordability purposes what if the property was empty or the tenant defaults? Leaves the lender in a potentially exposed position.

McDizzle

For affordability purposes what if the property was empty or the tenant defaults? Leaves the lender in a potentially exposed position.

That's a risk a lender has to decide if it is willing to take. Some lenders will want there to be evidence that a tenancy agreement is already in place or has been in place for some time.

AnotherJoe

lhchap18 wrote: »

Hi All,

I'm currently living in my family home which is worth roughly £80,000 and I have just under £40,000 left to pay.

I have an opportunity to purchase my fathers house from him where he wants £185,000 for (I could possibly have a further discount from him if needed but the house is worth >£200,000, so I'm already having a discount).

I'd really like to keep my existing house and possibly move it over to a buy to let mortgage, rent that out and after roughly 7 years, that house is then paid for and becomes my retirement fund in many years to come.

Will it? Have you done the maths? In your retirement do you want the hassle of being a landlord? The extra SDLT will likely chew up at least a years income and much more than that in profit. Can you afford a bad tenant not paying rent for 6 months and trashing the place?

The issue I have is I doubt it if the banks will allow me to do this. I've done the maths and I can certainly afford it and even run the two houses should it not be occupied. My income before tax is £34,000, HSBC online calculator is saying I can borrow £166,000 but I'm assuming that doesn't take into account if I was to take a buy to let mortgage out.

I really want to keep my existing house and buy the new one, but I'm really starting to think that this isn't an option. I have access to further money, but I'd even like to keep my hands on that if possible.

Anyone have any advice or a magic wand on how I could possible have the both? As I mentioned, I could potentially get the new house for a further discounted rate, but I assume the banks would still like me to put a deposit down and not really take that into account.

Thanks all

If the discount is big enough they will not require a deposit, they will indeed take that into account. That does mean you are taking from your dad of course.