Renting out current property and buying somewhere new.
Renting out current property and buying somewhere new.
Author
Discussion

MarshPhantom

Original Poster:

9,658 posts

167 months

Thursday 1st May 2014
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Thinking about moving but would like to keep our house and rent it out. We could put together a decent deposit and wouldn't be relying on the rental income to pay the mortgage.

Anyone have any experience of doing this? Would getting a mortgage be simple enough?

Thanks for looking.

Sarnie

8,375 posts

239 months

Thursday 1st May 2014
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It's simple enough but entirely dependant on all of the numbers involved...

craig-A

523 posts

250 months

Thursday 1st May 2014
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I was in a similar situation just over a year ago, provided the rental income covered the mortgage payments of the property I was moving out of(it did) and could come with a decent deposit (25%) on the new place was enough to satisfy the mortgage company.

CRB14

1,494 posts

182 months

Friday 2nd May 2014
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What sort of equity would you need in your current place to be able to rent out?

I know you can get a consent to let but some providers can be funny.

Dick Dastardly

8,326 posts

293 months

Friday 2nd May 2014
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Bear in mind it isn't enough these days for the rent to just cover the mortgage, as many lenders want to see a buffer. One of mine will only lend on 75% of the rent, so there is 25% left over, to cover things like void periods and maintenance. With these new mortgage legislation changes, it'll now be even tougher.

thekingisdead

320 posts

163 months

Saturday 3rd May 2014
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Dick Dastardly said:
Bear in mind it isn't enough these days for the rent to just cover the mortgage, as many lenders want to see a buffer. One of mine will only lend on 75% of the rent, so there is 25% left over, to cover things like void periods and maintenance. With these new mortgage legislation changes, it'll now be even tougher.
BTL mortgages are not bound by the usual mortgage rules so I don't think the recent changes will apply.

The OP will either need consent to let off current lender or swap to a proper BTL mortgage.