Will consent to lease affect new mortgage application?

Noodles_33

I have struggled to sell my flat in the current market and have been given permission to rent it out for 1 year. I then plan to either sell up or put onto a buy to let mortgage next summer. 

Will this now effect me when applying for a mortgage to buy a family home with my partner? The rent covers the entire monthly mortgage payment. 

DullGreyGuy

It will be part of the affordability tests, they'll presumably assume it isnt rented 100% of the time and so will consider if you can still afford both mortgages if it has a X% utilisation 

Hoenir

Noodles_33 said:

The rent covers the entire monthly mortgage payment. 

Have you accounted for income tax in your calculation. Only the interest element being offset to a degree. 

Have you  considered the higher cost of BTL mortgages? 

When you come to sell are prepared for the property to be empty for a period. You'll be responsible for all the outgoings with no income stream to fund it. 

BTL is fine as long as you enter it with your eyes wide open. Full of financial pitfalls along with the legal responsibility of being a Landlord. Tenants can be extremely canny and challenging. 

kingstreet

A few lenders will accept a letter from an ARLA registered agent or bank statement to evidence rent level and will ignore the mortgage on the let as long as it's self-financing. Avoid Nationwide.