I own two houses, can I do another ‘let to buy’?

AndyDufresne
AndyDufresne Posts: 65
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edited 30 January at 6:35PM in Mortgages & endowments
I have a house on consent to let on a residential mortgage. Last year, I did a ‘let to buy’ and got a second residential mortgage on a second property, so the lender on the second house effectively disregarded the first mortgage (it still reduced affordability a bit compared to if I didn’t have that mortgage in place on completion, but not by that much). I am residing at the second property and I rent out the first. I bought cheap and I am doing a complete renovation of the second house, so I should have about £30-40k in equity by the time it’s finished. 

If I wanted to buy another house (simply to move to a different area, or for any reason really), would I still be able to get another residential mortgage in the same way if I sold the second house? Ideally, I would port the second mortgage to avoid the ERC. 

Would the same lender still discount the first house mortgage for affordability purposes in the same way, even though I wouldn’t be doing a ‘let to buy’ on the second?

Alternatively, if I wanted to keep the second house as well and buy a third house to live in, could I do another let to buy with the second house mortgage disregarded in the same way as I did it with the first house? I would probably remortgage the second house to a buy to let as I would have enough equity. 

Comments

  • kingstreet
    kingstreet Posts: 38,602
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    Not much other answer here, other than 'possibly'.

    Too much detail required to give anything meaningful. Many lenders won't allow a port from a remortgage, only from a sale. You need to establish your lender's criteria.

    Again, treating a let as self-financing and ignoring it for residential affordability is lender dependent.

    Presumably you used a broker for the LTB. It would be prudent to do the same again.
    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.
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