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How do mortgage applications work if you already have a property rented out long term?
IAMIAM
Posts: 1,388 Forumite
Do all lenders just consider the current income and outgoings on the new property, negating the existing mortgage commitment because its on long term rental?
Do some lenders consider both mortgage payments resulting in reduced affordability and some consider just the new mortgage?
Thanks
Do some lenders consider both mortgage payments resulting in reduced affordability and some consider just the new mortgage?
Thanks
0
Comments
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I’m currently shopping for new residential mortgage for my main residence. I have a house I let. Many lenders accept if its self financed property usually more than 145% of mortgage payments. Some lenders don’t accept and some class it as “let to buy”.0
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The rental is roughly 75% extra.
MTG £500
Rental £8000 -
It's not as simple as that.
Your profit if any ?
Income ? Higher rate tax payer ?
Yield, costs and accounts over last 2/3 years.
One for a broker to help you find out if you can get a second property or your better off selling your rental first.
Don't forget the extra 3% stamp duty if your buying a second property.0
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