Buying second residential property with Consent-to-let on first residential property?

AndyDufresne

I have been exploring options around ‘let to buy’ in order to buy a second property whilst keeping the first as an investment. It seems it would be much easier to get consent to let with my current lender (NatWest) and find a lender for the second  that will take into account the rental income from the first property, in order to avoid the ERC and remortgaging fees. I didn’t take out the mortgage to do specifically this by the way, just exploring options for in a few years time. 

I am on a 5 year fixed rate. It seems NatWest offer consent to let for £120 annual fee. My intention would be to remortgage to a proper BTL at the end of the fixed rate period.

Are there any lenders that would be willing to lend on the second property without taking the CTL repayment commitment into account? Are some lenders better than others for this? Would this idea work?

kingstreet

As long as they consider the let property will be self-financing, there are lenders who will ignore the let property when calculating affordability for the new residential.

dimbo61

What you want and what is now possible maybe worlds apart.
Maybe speak to a whole of market mortgage broker who can look at the full picture 

gih

I think my comment on your other post is more relevant for this post... i.e. you will likely need rental income for a certain amount of time (e.g. 3 months) for it to be considered self-financing, otherwise it would be considered a liability when applying for the new residential mortgage.

amnblog

gih said:

I think my comment on your other post is more relevant for this post... i.e. you will likely need rental income for a certain amount of time (e.g. 3 months) for it to be considered self-financing, otherwise it would be considered a liability when applying for the new residential mortgage.

That would depend on the Lender used for the new purchase.