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Mortgage for buy to let

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Author Topic: Mortgage for buy to let  (Read 94 times)
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« on: September 09, 2020, 02:28:00 PM »

Hi guys,

I have purchased a house with my girlfriend and the one I am currently in i will be renting out. I have read that when applying for a mortgage on the new house I can say I will be renting my house therefore it won't effect my affordability, my question is has anyone done this and know the process involved is it just asked on the mortgage application or how does it work? Would be very grateful of some information on this please.
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« Reply #1 on: September 09, 2020, 06:35:20 PM »

I may be missing something here, but if you've already bought the house, what do you need the mortgage for?

Are you going to apply for consent to let from the mortgage provider on your old house or are you switching to a buy-to-let mortgage?

I always advocate going to an independent mortgage broker/adviser. It might cost you a little bit upfront but it's worth it for the expertise they provide and they'll have access to deals which aren't available direct.
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« Reply #2 on: September 10, 2020, 11:10:50 AM »

Recipe for disaster. Too many amateur Landlords taking this approach and finding out it doesn't work... chances are you'll end up falling-out with your girlfriend, get into loads of hassle trying to separate your new asset and have to uproot some nice family you've given [what they thought was ] a long-term home to, because you suddenly need your old home back. Play at Landlording with properties you won't need to reoccupy. Choose wisely...

Seen far too many times.
Newbie
Posts: 23

I like property

« Reply #3 on: September 10, 2020, 03:03:16 PM »

Recipe for disaster. Too many amateur Landlords taking this approach and finding out it doesn't work... chances are you'll end up falling-out with your girlfriend, get into loads of hassle trying to separate your new asset and have to uproot some nice family you've given [what they thought was ] a long-term home to, because you suddenly need your old home back. Play at Landlording with properties you won't need to reoccupy. Choose wisely...

Seen far too many times.

I have had some sound advice on here but you my friend are so patronising!

How the hell do you know our financial position and plans if ever we should split up! Please don't belittle and comment on my post again!



Thank you to all you guys who have shared some amazing experience!
Newbie
Posts: 23

I like property

« Reply #4 on: September 10, 2020, 03:08:31 PM »

I may be missing something here, but if you've already bought the house, what do you need the mortgage for?

Are you going to apply for consent to let from the mortgage provider on your old house or are you switching to a buy-to-let mortgage?

I always advocate going to an independent mortgage broker/adviser. It might cost you a little bit upfront but it's worth it for the expertise they provide and they'll have access to deals which aren't available direct.

Thank you for your reply and sorry if I was unclear please allow me to elaborate...

Currently have had a offer accepted with my partner on a new house,

She has rented her house out,


We are living in mine and want to change my mortgage to a buy to let once we have moved in our new house,

So my plan was to apply for a joint mortgage with her on our new house and then I need to change my current mortgage with first direct to a new bank as first direct don't offer buy to let mortgages.

Just wondering if anyone had experienced what I plan to do
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« Reply #5 on: September 10, 2020, 03:20:15 PM »

So two of you are planning on letting your properties and two of you may well need to move back in if it all goes south? Because you'd probably sell the property you've jumped in on and split things in that scenario...

The level of irresponsibility here is so worrying... the world is full of these amateur Landlord types who can't let go of their homes (probably because they're not 100% confident in their relationship and need an escape route)... their heart is not in the job and the people who will suffer most are the unfortunate Tenants who find they're going to be out on their backside if (when?) things change for you and your girlfriend. This is an unfortunate situation.

Why not just sell... like people used to do in the past? This game is not really for people who want to dip their toes-in - it is a professional arena nowadays.
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« Reply #6 on: September 10, 2020, 03:21:56 PM »

Please don't belittle and comment on my post again!

Sorry if you feel belittled, but that probably says more about you than it does me... Landlords have thick skins... it's a necessity... if you need to retreat to your Safe Space please make sure it's not the property you've let out to Tenants. You can't ban people from your posts... apologies.
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« Reply #7 on: September 11, 2020, 12:04:44 AM »

Currently have had a offer accepted with my partner on a new house,

She has rented her house out,

We are living in mine and want to change my mortgage to a buy to let once we have moved in our new house,

So my plan was to apply for a joint mortgage with her on our new house and then I need to change my current mortgage with first direct to a new bank as first direct don't offer buy to let mortgages.

Let-to-buy seems to be all the rage at the moment: you're the third person to ask about it on here this week.

As you're hopefully aware, having an offer accepted on a house is still quite a way from a purchase: either side can walk away prior to exchange of contracts. That said, it seems a bit odd to go house shopping without having the finance already in place, at least in the form of an agreement-in-principle.

If you're in a fixed period with First Direct, it's possible they may give you Consent to Let for the remainder of the term. I know Santander, who likewise don't offer buy-to-let mortgages, offered me a consent on my existing mortgage, although in the end I didn't use it as I'd reached the end of the fix by the time I got my first tenants in.

When looking at affordability, a mortgage provider will indeed look at a buy-to-let mortgage in the context of the income-generating asset to which it relates. They'll do that with your girlfriend's renter, assuming she's got a mortgage on it. The problem in your case is you haven't got a buy-to-let mortgage or an income generating asset yet. That doesn't mean nobody will lend to you, but it does mean a lot of people won't, or won't lend as cheaply. Risk has a price: arguably that's how we make a lot of our money.

If you're dead set on doing this, then talk to a mortgage broker: they'll tell you whether it's feasible and search the market for the best lenders. Personally, though, I wouldn't be looking to increase my exposure to the property market at the moment. Yes, you'll save some transaction costs by letting out an existing property, but I reckon you'd save more by holding on to your money until the market tanks again.

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« Reply #8 on: September 11, 2020, 10:04:46 AM »

Quite.

This quickly turned from "I have purchased a house with my girlfriend..." into "Currently have had a offer accepted with my partner on a new house"... someone here who doesn't seem to think the details matter methinks. If they railed against me for my comment, imagine how upset they'll be when a Lender possibly turns them down... or when their Tenants stop paying rent and have 6 months before they can be evicted.
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