Mortgage on the second home

[scooterscot]

Is it a good time to be getting into buy-to-let?

What are rental prices like?

It's a bad time. Just completed my return and apparently because of the low low low base + 0.49% interest the mortgage interest I can claim has meant I've made a whopping great big profit.

[ChimpMaster]

One day, in the not too distant future, you are going to wake up and realise, like millions of others in this country, that you simply don't have the money to service your debts any longer. What will you do then?

WTF?

Anyway, to gemasp: should be no problem. We've recently bought our 3rd BTL and the building society just wanted to make sure that my salary and dividends (or net profit from the company) were over £25k. They wrote to my accountant to confirm this.

Oh and Contractor Financials are a great help and can sort you out for no fee.

PM me if you would like any details or help on this.

[bingobob]

Hi guys,

Can someone tell me if it is possible to get a mortgate on second home?

I have a mortgage with my wife which we got as first time buyers. Now we want to move to different area without selling the flat and let it out. I should say that the flat cost less now then what we got it for, unfortunately.

Is it possible to get a mortgage for second home? Do we need remortgage current flat to buy to let?

Thanks for any advice.

One day, in the not too distant future, you are going to wake up and realise, like millions of others in this country, that you simply don't have the money to service your debts any longer. What will you do then?

[MarillionFan]

You can get a second mortgage, but the amount you can borrow will be

Multiple x Earnings - minus existing mortgage.

This is because this is based on your personal circumstances. You would also have to get agreement from the lender(in principle but most don't) to rent out their house.

It may be that you don't have enough this way at which point you can either change your existing mortgage to a BTL(which you will have to pay fees for) and then reapply for a new mortgage.

I would recommend the following.

Look to buy your new property on a BTL. This means it will be dependent on multiples of rent versus interest repayment. Normally 125% times the interest.

You can then use existing savings, or draw down on your first mortgage to apply for your new BTL. Provide a decent LTV and Bob's your uncle.

That way you have not stretched yourself on your personal mortgage and have a new / seperate mortgage on your BTL.

[MrRobin]

You can, yes (we did this ourselves a while ago), but there are a few things to bear in mind:

1. You will need to gain permission from mortgage lender A to let the flat. They may put you onto a different product, perhaps with a higher interest rate

2. Mortgage lender B may require proof of income (i.e. letting agreement) from the flat to show that it covers the mortgage payments

3. Mortgage lender B is likely to lower the maximum LTV because you have exposure elsewhere

[ThomasSoerensen]

It should be no problem getting a mortgage on the second home.
The mortgage is attached to the property not to the person.

For the second home remember to get as big a loan as you can get - for repairs etc. before moving in.
125% of the price you pay is quite common.

Good luck Mr. Landlord

[Doggy Styles]

Is it a good time to be getting into buy-to-let?

What are rental prices like?

[gemasp]

Hi guys,

Can someone tell me if it is possible to get a mortgate on second home?

I have a mortgage with my wife which we got as first time buyers. Now we want to move to different area without selling the flat and let it out. I should say that the flat cost less now then what we got it for, unfortunately.

Is it possible to get a mortgage for second home? Do we need remortgage current flat to buy to let?

Thanks for any advice.