2 mortgages chances or options?

col81

I have 999 credit score earn £45k I have a house £150k value £119k owe costing £350 I now rent this out to a relative sho covers the mortgage.
Would I be able to get a second mortgage for a property for myself? What likely mortgage could I get? Or would I need to turn the first mortgage to a buy to let? I either need a second mortgage or will be forced to rent

K_S

@col81 Plug your data into (including the background property and running costs) a couple of lender affordability calculators and see what it returns. That will give you a very very rough idea of whether the numbers stack up for what you are looking to borrow keeping the existing property. Depending on the lender, with a property in the background you may also be capped at a certain LTV.
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

[Deleted User]

You may struggle to convert to buy to let considering you are renting to family. 

col81

I have completed the Santander application it suggests I could borrow upto £140k I presume this is because I pay 350 mortgage but take 250 rent so its only costing me 100 per month

K_S

col81 said:

I have completed the Santander application it suggests I could borrow upto £140k I presume this is because I pay 350 mortgage but take 250 rent so its only costing me 100 per month

@col81 Generally speaking, mainstream residential lenders are unlikely to take into account the rent you get from this property unless it's formally tenanted. 

Just to be clear, the affordability calculator is only as good as the data you put in and the criteria for the lender, so anything you get from that may change.

col81

It is a family member that lives there with a full tenancy agreement 

col81

I had to produce the tenancy for the housing benefit/council. I take a 250 income costs me 350 so as a lender I presume they will look at it as 100 a month commitment the houses I am looking at are in the £120k region

K_S

@col81 It's not that straight forward unfortunately. The Santander calculator should show you what the calculated monthly running costs are (as per Santander, every lender will look at it differently) is from the numbers you put in. Like so -

lonibra

OP, you will struggle to get a 120k BTL mortgage with a monthly rental income of £250 due to stress testing. It will have to be closer to £550-600, perhaps more since you will be a higher rate taxpayer with 45k salary and over 5k rental income. Talk to an MB.

col81

Can I not just keep the current mortgage running? It is only 350 pcm and I receive 250. Surely I can borrow a lot more for a second mortgage I want around £120k on the next house and will have 10% deposit.

lonibra

If the bank will give you what you want then of course you don't need to change. I only commented based on what you mentioned about changing to BTL.