We want to move home. Do lenders take Buy To Let mortgages into account?

Posted on 15 September 2014 by Kamal

My spouse and I are currently considering moving house to a bigger property. We also have some buy to let properties with outstanding mortgages but with the rental covering the mortgage repayments e,g. being more than 125% of the mortgage repayment. Do the lenders take into account our BTL mortgages when considering our application to borrow for our residential property? We have sufficient income of > £125k and are looking to borrow around £400k with £225k deposit for property costing £625K. We are in mid fifties looking for loan term to age 70, approx 15 years. Kamal.


Unfortunately there's no simple answer to your question. Some lenders will take your Buy To Let's into account on their affordability assessment, especially if they haven't been rented out for a minimum period, typically 6 months, whilst others will ignore them if the mortgage payments are being covered by the rent.

The term of the loan may also affect the lenders available to you, as each lender has a sllightly different way they assess affordability, and they would want to satisfy themselves that you could continue to afford the mortgage if the term takes you past your intended retirement age.

If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a better idea of how we can assist.



More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

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.

You are currently offline. Some pages or content may fail to load.