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Getting a residential mortgage when you already have a BTL mortgage
purple-rain_3
Posts: 43 Forumite
Would really appreciate some advice. I had to relocate due to my job but didn't want to sell my home, so I converted the mortgage to a BTL mortgage and currently rent near my place of work. The rent I receive for the BTL property more than covers the mortgage and the rent I pay for the property I live in is more than my mortgage payments would be if I bought somewhere.
Therefore, I would love to buy in my new area and stop renting but still want to keep my BTL property - can I rely on the normal affordability calculators or (given they don't take into account my BTL mortgage) is it likely my borrowing power will be lower? How much of a negative impact (if any) will a BTL mortgage have on my ability to get a new residential mortgage?
Therefore, I would love to buy in my new area and stop renting but still want to keep my BTL property - can I rely on the normal affordability calculators or (given they don't take into account my BTL mortgage) is it likely my borrowing power will be lower? How much of a negative impact (if any) will a BTL mortgage have on my ability to get a new residential mortgage?
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Comments
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There are lenders who ignore a self-financing BTL in calculating residential affordability.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.1
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@purple-rain_3 The impact (if any) will differ across lenders but as Kingstreet said above, there are plenty of lenders that will ignore given the details in your post. In some cases the lender affordability calculator will ask details about background properties so these results will be more accurate.purple-rain_3 said:Would really appreciate some advice. I had to relocate due to my job but didn't want to sell my home, so I converted the mortgage to a BTL mortgage and currently rent near my place of work. The rent I receive for the BTL property more than covers the mortgage and the rent I pay for the property I live in is more than my mortgage payments would be if I bought somewhere.
Therefore, I would love to buy in my new area and stop renting but still want to keep my BTL property - can I rely on the normal affordability calculators or (given they don't take into account my BTL mortgage) is it likely my borrowing power will be lower? How much of a negative impact (if any) will a BTL mortgage have on my ability to get a new residential mortgage?
A couple of lenders may also allow you to use the rental income to boost your borrowing power.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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