Buy to let or residential??

LionKing

Hi.

If you have more than one mortgage and a credit check is carried out by a new lender for a remortgage, does the credit check disclose whether existing mortgages are buy to let or residential?

I have two residential properties both on residential mortgages. Northern Rock allowed me to rent out my second property to a family member without converting to buy to let

My main home mortgage (with another lender)is now due for renewal.

Will i have problems remortgaging with a new lender? (eg will they expect my salary multiple to cover both mortages even though the second mortgage is been covered by rent)

I do not have any adverse credit history and never missed any payments during mortgage history

Any advice much appreciated

Thanks

LionKing

Any thoughts?

Gorgeous_George

I think that the new mortgage will be based on your income and that the second mortgage will be considered as self-supporting (BTL). Of course, if you are sub-prime, this may change things somewhat.

GG

MortgageMamma

You wont have a problem so long as your buy to let property is self financing.

MM

LionKing

hi,

will second property still be viewed as self financing even though under residential mortgage??

LionKing

hi....any thoughts?

poppy10_2

No .

silvercar

it will be self financing if the rent covers the mortgage plus a bit more for other expenses.