buy to let question

[noddyholder]

I am asking this for someone else as although I have bought and sold a lot am not 100% sure on this and want an expert opinion!Ok my friends have just sold their main home and also have a flat as an investment.They got it with a buy to let mortgage 2 years ago even though they had no intention of letting it as they use it for work and weekends but this was the only way to fund a second home.They have never let it so no tenancy agrement etc but mortgage always paid and they can afford it I presume.They are now planning to buy a house a family hom and are doing the mortgage etc and I thought the loan on the flat would be taken into account when checking them out but they say no as the bank think its let it is totally seperate.is this right?You can be mortgaged to the eyeballs and its ok!

Why are they wanting to sell up and buy somewhere else?

I think any lender who would not do any checking will not be around for very long at the moment.

They aren't.They had a house, bought the BTl flat and have now decided to buy another family house.the btlis somwhere they use as a crash pad/2nd home it has never been lt to anyone ever they use it and thir friends.they are living in it atm while they look for new house they have made an offer had it accepted and are now doing the 2nd mortgage.I said I thought they would have to show accounts for the btl as it would show on a credit check but they said they have 3 months to port their mortgage from the house to new house and don't think they will be checked out again.

I meant why did they sell their family home? Did they have to move?

job relocation

Ah I see. It might all work out ok.

Perhaps there is a vast income from investments/trust fund/lottery win that they've neglected to mention?

Either way you'll be there with the champagne/tea and sympathy depending on outcome.

Not exactly they are relying 100% on good health and capital gains!

i have a buy to let and my main mortgage lender never seems to care if it is actually let out all the time - just whether or not it's rental value is in excess of the buy to let repayments so in theory i could let it out.

the buy to let lender just cares that the payments are made.

your friends may be ok. but they'd have to be willing to let the buy to let if necessary and the sums on that would have to add up in the current rental market.