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How do banks look upon buy to let properties now?
A few years back, we had banks who were happy to view a good BTL as an asset and income.
I have a suspicion that may no longer be the case...?
.
Thanks.
Oh, and anyone want a nice flat in Highland Perthshire? 😉
They won't take it the rental income as income for a mortgage unless you have a portfolio running as a business with several years accounts. BUT if your case is borderline it will count in your favour.
It is more whether the lending on that BTL property is counted in what they will lend us on own home. We had a lender before who was not bothered by the mortgage debt on BTL and still leant us good income to mortgage level...but that was in 2004....
Is the mortgage on the BTL a business mortgage? If so, why should a business you happen to be running (that you're not claiming income from to support a mortgage application) be something the lender would be interested in?
No, a personal BTL mortgage.
matt_outandabout - Member
No, a personal BTL mortgage.
So are you to be buying the home using a Buy To Let mortgage, but your are to be living in it ?
Are you buying an investment or moving out of somewhere?
We swapped to BTL from a normal one a year or so ago with no drama's as there was a good Loan to Value ratio and the mortgage was close to the income - didn't swap companies just arrangements, rates etc. not as good but all going fine now.
Have a BTL, but plan on buying second property to live in. We currently reside in a rented family home.
When you say BTL, do you just mean interest free?
Based on the reduculous 350k mortgage some friends of ours ( who earn similar to us)just got with 5% and the help of a 20% help to buy loan from our awesome goverment id say the banking system is back to square 1 ****ed up - so youll probably be fine.
Based on the reduculous 350k mortgage some friends of ours ( who earn similar to us)just got with 5% and the help of a 20% help to buy loan from our awesome goverment id say the banking system is back to square 1 **** up - so youll probably be fine.
I'd say similar. We just got a mortgage on a second property (which is now our family home) and the bank were fine with a letter from our rental agency stating a minimum income we could expect when renting out our flat. No previous renting history or accounts.
We didn't have to borrow extra money and had a better deposit than 5% though. That's crazy 😯
In answer to your question op, the mortgage you have on the buy to let won't affect your personal mortgage limit as long as the btl mtg payment is covered by the rent & can be evidenced. Also if you want a personal mtg of 75% you might struggle.
Thank you Jekyll - that's the answer.
As others commented, it is not a matter of borrowing silly amounts, just trying to work out what we could afford, and what banks may lend should we choose this route.
We can sell the BTL , but the income is rather splendid, especially as someone is paying my mortgage off 🙂