Residental Mortgage + BTL issue

kinger101

Hi all.  Appreciate your thoughts on this one, but realize speaking to our broker may be an option.

The scenario is as follows.

We currently own a property which we intend to sell and purchase another, obtaining a residential mortgage to do so.  Affordability checks came back fine.

At the same time, my OH owns a property that she lets.  Currently mortgage free.  However, she intended to release some funds via a BTL mortgage as part of our deposit.  We spoke to a high street bank today and got a computer says no.  The rental income is more than sufficient to cover the mortgage interest, but it also factored in her income and the fact there would also be a mortgage on the residential property.

Oddly, my income alone was nearly enough for the residential mortgage, but we'd prefer to avoid that route if possible.

Does anyone know which lenders might be able to do both mortgages at the same time - i.e. they use rental cover alone as criteria for the BTL?

Thanks  

housebuyer143

Most BTL mortgages are self supporting so you shouldn't need to include your income. They do a stress test though, so the rent amount determines the loan you will get, not the other way around. 

It should be fairly easy to release equity from the BTL and then use that towards the residential. 

alanyau88

You need to provide LTV figures and rental income figures.  Lenders will stress test at a much higher level now and therefore even previously mortgaged properties may not pass the stress test without putting more deposit money into the mortgage.  Speaking to a mortgage broker will help you.

amnblog

This is the problem 'We spoke to a high street bank today'

If you 'spoke to an independent mortgage broker' you would have a solution, provided the figures fit.

Half a dozen ways to trip up on a case like this if you do not have the experience.