Second mortgage same provider ?

restless6

Hi
I own a house which I am planning on renting out long term.
I am currently renting a house to live in myself .

I am thinking of trying to get a second mortgage to buy a home as rent is expensive-
Would I be best to approach my current lender - nationwide - or is it better to seek a separate one for each mortgage - or does it make no difference?

kingstreet

It's not a second mortgage, that has different connotations.

You are looking for a further/another residential mortgage when you are letting your current property.

You should look for a new mortgage with a lender willing to accept your current property will be let and will be "self-financing" from a letting agent's estimate letter. Only then will you avoid the cost of the existing property and mortgage affecting affordability for the new one.

Nationwide doesn't accept this. It will require evidence of three months rental income payments via bank statements before it will ignore the current let. You would need to let it for at least three months before you can apply for another Nationwide mortgage.

You will need broker help with this as lender selection will be paramount and consent to let from Nationwide on the current mortgage/property.

restless6

Thank you for the information
I have consent to let .

I am hoping to put my house for rent by October. All going well. My mortgage is £275 a month and I can charge £650 a month rent so I should be ok with that house payment wise.

I’m not sure how affordable I am for another mortgage though as i don’t earn a massive wage . I guess that’s why I need to see a broker .

Thanks