Possible to buy second property?

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    Possible to buy second property?

    I have one flat let out value 220k mortgage 128k equity 92k. Rent 9k a year.
    want to know if its possible to buy a second.
    Last year i arranged the current btl mortgage based on my income of 30k iwas able to borrow up to approx 140k but settled on 128kfor alower rate.
    This is with natwest. I rang them again and things have changed they will only lend 101k for another purchase.
    I dont have any other properties.
    My income is still approx 30k.
    I have 20k in the bank and 73k owed to me coming back at 1.5k a month. Although i could possibly get 30k back soon which would increase my deposit to 50k.
    is there a way to get another btl mortgage through a different bank or broker?

    #2
    Hi Propertygoesup
    Funding a second purchase is definitely on subject to the type of property being acquired and meeting criteria, the rental being sufficient and having a minimum of 20% and ideally 25% deposit immediately available. The fact that your primary income is £30000 allows full access to competitive rates within the BtL market rather than being restricted to lenders who have no minimum income requirement.

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      #3
      Hi loanarranger
      It appears NatWest no longer lend what I require, and they were one of the only banks who would consider me based on the fact I don't own my own residence. There was only a handful of lenders who didn't require your own residence. Are you aware which other banks allow this?

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        #4
        To start off , you can request your broker to approach TMW or Foundation Home Loans or Precise Mortgages, there are others but these should help you get going , unfortunately like so many lenders today , they are Intermdiary driven rather than direct to the public.

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          #5
          NatWest will lend me 103,000 on my current 29000 salary. if I was to go crazy on overtime and bring my last 3 months salary to 35000 they would lend closer to 150,000. Do you know if this is similar story with all the banks loanarranger?
          To have a chance of buying a second property I need at least the 150,000.
          Is it better to go for another buy to let (like I already have) or buy the second property as a residential live-in property?
          It seems either way it depends on my income.
          Or maybe now isn't the time due to possible interest rate rises.
          My only other option is Let-to-Rent, where I leave my existing BTL as it is, and rent somewhere for myself around the same price my BTL is let for?
          Appreciate your views!

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            #6
            Let’s be specific, are you wanting to buy a second property for a Buy to Let investment or for owner occupation.?
            If you are wanting to buy for investment , what is the anticipated rental income ? What type of property are you hoping to buy?

            Should you be buying for your own occupation , the loan is determined by your net disposable income taking full account of your key monthly items of expenditure including the monthly payments of credit cards and any unsecured loans; the net amount is multiplied on average by 4.5 / 5 to establish the maximum borrowings. It is seldom that rental profits are taken into the affordability matrix if the property is subject to a mortgage.
            Given that interest rates are highly probable to be increased next months, some lenders have either withdrawn competitive rates or increased rates, Nat West did this twice in the last week.

            i can only give advice if you are more forthcoming on the facts.

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