Hi all,
Considering buying a bigger house and renting out 2/3 bedrooms to lodgers (people I know).
I need to find out what I could borrow, to find out what my price range could be.
I will have a deposit around £50k, a rental income from 3 rooms of £975. However, my own income from job is only £22k.
How would this work? I can see two options, but I am no expert:
1. a residential mortgage 5x income giving me £110k loan and property up to £160k.
2. buy to let mortgage based on rental income, potentially borrow 4 times my deposit, so borrow £200k allowing me to buy up to £250k.
However, I'm not sure I am allowed a buy to let if I don't already have a residential mortgage? If anyone can shed some light that would be great!
Considering buying a bigger house and renting out 2/3 bedrooms to lodgers (people I know).
I need to find out what I could borrow, to find out what my price range could be.
I will have a deposit around £50k, a rental income from 3 rooms of £975. However, my own income from job is only £22k.
How would this work? I can see two options, but I am no expert:
1. a residential mortgage 5x income giving me £110k loan and property up to £160k.
2. buy to let mortgage based on rental income, potentially borrow 4 times my deposit, so borrow £200k allowing me to buy up to £250k.
However, I'm not sure I am allowed a buy to let if I don't already have a residential mortgage? If anyone can shed some light that would be great!
