BTL any experts?

[noddyholder]

If you have a buy to let mortgage do you have to declare it when applying for a residential Does it affect how much a lender will lend on your home? This is not me but a friend and I am not 100% sure. I would have thought it would be considered as it is debt but want to check. She doesn't actually let teh property she lives in it! But she wants to buy a holiday home

I am a little bit confused. Why does your friend have a BTL on a residential property? Normally the interest rates are higher, and there are different clauses.

Or do you mean she wants a BTL on the holiday home and she has a residential already?

Either way the debt will be taken into consideration along with income and many other things when underwriting the second mortgage.

It is complicated. She bought buy to let as she already had a house and couldn't get mortgage as not enough salary. She then sold her residential and moved into BTL. Now she wants to buy a family house and wonders if mortgage n btl will be considered. I think it will she says no. The repayments are low atm as are tracker but the actual ££ is quite large and is IO

Yes she has to declare it. It is a financial commitment and if they find out further down the line that she already had a mortgage then it could invalidate the new one. On another note, it is a condition with most mortgages that you cannot live in a house that you have a BTL mortgage on just as you can't rent out a property with a residential mortgage on it. I would suggest that your friend looks to change her current btl to residential.

I was right then but tbh I am an interior designer but she assumes I am mortgage savvy but this is odd. She can't convert it to residential as she can't afford it! AT the moment mortgage is about 200 and started out at 950 per month. She uses it for work in town and wants to buy family home in suburbs. She thinks as long as she pays it and not in arrears they wn't ask but i think new mortgage it will show and they will ask for letting agent stuff???

When she applies for a new mortgage they will do a credit search, maybe more than one, and the BTL will show up on her credit report as a lender with x amount owed. She won't be able to get away from it.

I think she has accepted that but she seems to think as it is always paid on time it won't matter that she doesn't have tenants I have never let a house so have no idea but I would think they would check but maybe she is right

She will have other bills going there though, her bank account, credit cards etc will be tied to that property so they will see from that that it is her home address.

I think she will get in trouble am worried but she isn't so will keep trap shut!

Bless you, it is difficult isn't it when you see someone potentially getting themselves in stook.

It won't show on the credit report that it is a BTL, just the lender. I wouldn't advocate not telling the new lender the truth, but at the end of the day you have done all you can and your friend will do what she wants.

Hi - I had a pre-existing BTL when I got my residential mortgage. The BTL obviously showed up on the credit check they did of me (I had declared it anyway). In my case the BTL was not taken into account in deciding whehter (or how much) residential mortgage to provide me with because we received 1.25 x the monthly mortgage in monthly rental income but I had to prove this. Had I not had such good rental income the mortgage liability would have been taken into account at least to some extent.

Thanks FW and sarah. I am worried as she has no rental income because she has no tenants! She just pays it herself.