Will a buy to let let me borrow more for a personal mortgage

Stu6781

If me and my partner were to take out a buy to let mortgage for an investment property, therefore increasing our income with the net rent proceeds... would that enable us to borrow more on a joint personal mortgage for our own home? I’m presuming the answer is yes on the logic our household income will go up, but I just want to double check with people.

thanks 

maximoose94

Yes, to an extent. The provider would have a calculation for working out a percentage of the income in affordability. 

dimbo61

At the same time it could make your situation worse.
How would you pay the BTL mortgage if the tenant stopped paying the rent.
It is another commitment and the best you can hope for is that the residential mortgage lender will ignore that mortgage as it is self financing from the rental income.
You will also pay 3% extra stamp duty when buying your home 

Thrugelmir

There's no guarantee that the BTL would be self financing. While your income may rise. So do your fixed outgoings. Also the BTL would require a sizable deposit. 

[Deleted User]

Majority of lenders will only use the rental income if the property is unmortgaged.  The ones that will use it even if its got a mortgage will need to see 2 years self assessment returns and use the income from there.  They will also take the mortgage as a commitment and usually at a much higher rate than is currently being paid