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Let to Buy

Posted on 4 March 2011 by kate macdonald


Looking to purchase a second property to live in ourselves and rent out current house (which is mortgage free). Would we be able to get a mortgage on a second property and leave the first mortgage free? Would like rent from 1st to cover mortgage payments on second.

Kate,

This is a perfectly feasible request and I don't see too many difficulties in finding a Lender who would be happy with this scenario.

The new residential mortgage would be subject to all the usual underwriting criteria, such as income, credit worthiness and valuation and because the current property is mortgage free this can effectively be ignored.

There are certain advantages to having the mortgage secured on your let property and you would have to weigh these up against the interest rate and arrangement fees that come with BTL mortgages. These are generally higher than for residential mortgages.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 tell the consultant the date and title of your question, they will be able to look at your situation and advise you accordingly.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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