Buy to let mortgage and standard mortgage

lucybmercer

Hi. Hoping someone can help. I own a property I have a mortgage on, however, I’ve had to rent this out (obtained permission from mortgage provider) due to moving away with my job. I want to ask if I moved to a buy to let mortgage on this property would I get more money on a second mortgage to buy where I currently live? I don’t think I will be able to sell in the current market without losing money. 

canaldumidi

Speak to an independant mortgage broker to see what kindof BTL mortgage you can get, and also what standard residential mortgage you'd qualify for.

Or post on the mortgage board here?

K_S

lucybmercer said:

Hi. Hoping someone can help. I own a property I have a mortgage on, however, I’ve had to rent this out (obtained permission from mortgage provider) due to moving away with my job. I want to ask if I moved to a buy to let mortgage on this property would I get more money on a second mortgage to buy where I currently live? I don’t think I will be able to sell in the current market without losing money. 

@lucybmercer Generally speaking, yes it may help boost borrowing.

1. Having the mortgage on a capital-repayment basis (usually the case when you get Consent/Permission To Let) usually means that it impacts your affordability (as per lender calculators) significantly. By moving to an interest-only BTL mortgage, as long as the rental payment covers the monthly mortgage payment, the background BTL property is ignored for affordability purposes with an appropriate lender.

2. Depending on the details, with some lenders, you may even be able to use the rental income to boost your max borrowing by a bit.

Do note that you will need to pay a 3% stamp duty surcharge if buying a new property. You can apply for a refund if you sell the old property within 3 years.

MSE_ForumTeam5

Moved to Mortgages board