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2nd mortgage / BTL

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  • 2nd mortgage / BTL

    Good evening all,

    I'm considering moving into a smaller house near me (value £75k), however I already have a mortgage for £85k on the house I'm living in now.

    A lady from work is interested in renting my current place (mortgage = £325, agent estate rental value = £450).

    My question is, with my salary of £26000 will I:

    a) Be able to just get a second mortgage for the new place and leave my first and rent it out (assuming I tell my current provider with this and they are happy).

    b) Need to transfer my current mortgage to Buy To Let before I can use my income again to buy the next place?

    Any advice welcome,
    Regards

    Dan

  • #2
    Re: 2nd mortgage / BTL

    The big question is really about the amount of equity you have - at the end of the day, if you have funds to secure a good deposit, lenders will be more favourable to you.

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    • #3
      Re: 2nd mortgage / BTL

      A few years ago you may have been abnle to Dan as lenders looked at the return of the BTL and not quite as much at your own income- whereas now there are stricter ruules on your own salary as well as tighter criteria for your overall 'affordability'.

      You really need to sit down with an IFA and look at your options.

      As Brian says a lot will depend on your currentl level of equity which you dont reveal in your post.

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      • #4
        Re: 2nd mortgage / BTL

        If you intend to let one of your properties out long term you will need a buy to let Mortgage, if you have a lender in mind talk to them about their lending criteria and you should get an insight into what salary etc you will need
        Best wishes

        Sean Hughes

        Independent Financial Adviser

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