remortgage question

[philv]

Hi

I am about to remortgage my residential property where i live.

I have another property which s rented out.

When i remortgage i will no doubt be asked about other loans etc.

If i state that i am letting out the other property, will the new mortgage company ask for the permission to let authorisation from the lender of the other property (which i currently do not have)?

Has anyone any experience of this?

Thanks

[Sarnie]

philv said:

Hi

I am about to remortgage my residential property where i live.

I have another property which s rented out.

When i remortgage i will no doubt be asked about other loans etc.

If i state that i am letting out the other property, will the new mortgage company ask for the permission to let authorisation from the lender of the other property (which i currently do not have)?

Has anyone any experience of this?

Thanks

They could potentially ask for this and if they do and you don't have it then they will likely decline your application as if you've broken the T&C's of another lender then why wouldn't you do the same again to them?

Also, depending on the lender they will take the loan payment as a commitment, irrespective of whether you have rent covering it. This will then severely affect your affordability. Some lenders will ignore mortgages in the background, others won't. Therefore picking your lender is vital otherwise you may waste weeks trying to force through an application with a lender that they are never going to accept.

[cpas]

Taking the above into account, it may be just worth mentioning the mortgage on the other property and not mentioning any income from it - say it's a second home or something. They won't count the income anyway as it's not guaranteed.

[philv]

cpas said:

Taking the above into account, it may be just worth mentioning the mortgage on the other property and not mentioning any income from it - say it's a second home or something. They won't count the income anyway as it's not guaranteed.

Yes - thats the conclusion i came to after playing with a lendors affordability calculator.
The income doesnt count so not worth mentioning.

Thanks for the reples.

[Sarnie]

cpas said:

Taking the above into account, it may be just worth mentioning the mortgage on the other property and not mentioning any income from it - say it's a second home or something. They won't count the income anyway as it's not guaranteed.

Yep you can do this, as long as your income figures are sufficient to maintain both mortgages.