Renting Property and Getting 2nd Mortgage

tombolonova1

Hi, 
Does anyone have experience of renting a property out and getting a 2nd mortgage. It looks like the sale of my property will fall through and we are looking at options to still proceed on the purchase of another property. 

I have a tracker mortgage and the ltv is just below 75%.

Does anyone know:
Are there any lenders who would think this is acceptable?
What kind of LTV is preferable?
Does a tenancy agreement need to be in place for a certain amount of time?
Will I need to change my tracker mortgage? 
Any other advice?

Thanks 

Toyo_86

Hi, 
I have just done that. My flat did not sell due to EWS issues and so I will be renting it out. I applied for a mortgage with 80% LTV and got approved. The lender requested for a consent to let from my existing mortgage lender and also a letter from an estate agency saying what the expected rent will be (so that it shows that it will cover the mortgage payment). There was no request for a tenancy agreement as I still live there pending the completion of the new property. 

Hope that helps

foxy-stoat

Research becoming a Landlord first, choosing the right mortgage for you is only part of the journey.  Have you crunched the numbers and done a business plan.....what if the poor sap who rents your property goes on furlough/loses their job and you cannot kick them out for 6+ months?  

If you have enough money to pay for both mortgages for 12 months + with no rental income then go for it.

tombolonova1

Toyo_86 said:

Hi, 
I have just done that. My flat did not sell due to EWS issues and so I will be renting it out. I applied for a mortgage with 80% LTV and got approved. The lender requested for a consent to let from my existing mortgage lender and also a letter from an estate agency saying what the expected rent will be (so that it shows that it will cover the mortgage payment). There was no request for a tenancy agreement as I still live there pending the completion of the new property. 

Hope that helps

That's good. It's sounds as though it's an option then. We really want to move because we need three bedrooms as we have a baby due end of February. 

Which lender did you go with? Did they factor in future rental income in your incomings? 

Toyo_86

tombolonova1 said:

Toyo_86 said:

Hi, 
I have just done that. My flat did not sell due to EWS issues and so I will be renting it out. I applied for a mortgage with 80% LTV and got approved. The lender requested for a consent to let from my existing mortgage lender and also a letter from an estate agency saying what the expected rent will be (so that it shows that it will cover the mortgage payment). There was no request for a tenancy agreement as I still live there pending the completion of the new property. 

Hope that helps

That's good. It's sounds as though it's an option then. We really want to move because we need three bedrooms as we have a baby due end of February. 

Which lender did you go with? Did they factor in future rental income in your incomings? 

Congrats on the baby. It was with Natwest. I don’t believe they factored the rent into my incoming - i think it was more for affordability as I would have not passed if I was paying 2 mortgages.