Will getting a buy-to-let mortgage impact ability to get a residential mortgage later on?

VirtualJayne

Hi,
I’m looking at buy-to-let mortgages for a property I already own 50% of (unencumbered), in order to buy the other 50%. 
I just wanted to check if getting a buy-to-let mortgage on this property will negatively impact my ability to get a residential mortgage in the future? Will it be factored in by lenders? 
Also - will it impact my ability to get another buy-to-let mortgage in the future? 
If relevant - the property I currently co-own and am looking to buy fully is in Scotland. 
Thanks.

dimbo61

Yes lenders will look at the debt and income from the rental property along with all your other circumstances.
Job, income, age, savings, kids etc

Thrugelmir

You'll need to speak to a broker in order to find a BTL mortgage. 

cjcart

This is something that I’d like to know also. We already have a buy to let mortgage and a residential mortgage. But would like to do a further advance to release funds on the buy to let. We’d use this money to clear debt mostly. But would like to know where we would stand if we’d remortgage our residential to extend in the near future. Or is selling the buy to let better? I just keep thinking it’s an investment that we’d probably not be able to make again but the debt is taking too long to clear.
Any advice would be appreciated. Thank you. 

kingstreet

There are lenders who ignore a let property/mortgage if it is self-financing if you then want a residential mortgage for a main residence. If you want the excess rental income to assist with residential affordability, you may need to be able to evidence that income on HMRC tax calculations for a couple of years.

movilogo

If rental income is 1.5x (or more) of rental mortgage i.e. rental property is self-financing then you should have much impact on residential mortgage but it all depends on lender. Also, this assume you are a casual landlord and not a portfolio landlord (having 4+ BTL properties) for whom the rules are somewhat different. 

Hoenir

cjcart said:

 But would like to do a further advance to release funds on the buy to let. We’d use this money to clear debt mostly. 

As the money released is not for the purposes of purchasing a property. It wouldn't be tax deductible. 

Probably be better using the residential property.