Hi. I'm hoping that someone with a bit more knowledge than I could help me answer a few questions.
Situation is as follows. I currently own 2 flats in London, both mortgage-free. I live in one which is worth around £450,000 and let out the other which is worth around £275,000. My rental income is currently £1,200 per month and I have never had a problem renting out the flat as it is close to the tube in Zone 2.
I am considering remortgaging my existing BTL for £150,000 to use as a deposit to acquire another BTL in London. However I am also a contractor and my contract is due to end in 4 months time. Prior to this contract I had been without a contract for approximately 11 months but before that had been in almost constant employment through a limited company. During my 11 months out of work I dissolved my limited company.
The questions I have are:
1. Will my lack of income during the 11 month period count against me getting both the existing BTL remortgage and the new BTL mortgage?
2. Will the limited remaining time in my current contract count against me?
3. Will the income of my limited company over the past 3 years be admissible even though it is now dissolved?
4. Is there a limit to how much I can borrow for the new BTL? E.g could I borrow £350,000 to purchase a flat of £500,000 if the proposed rental income was 125% of the mortgage repayment?
Situation is as follows. I currently own 2 flats in London, both mortgage-free. I live in one which is worth around £450,000 and let out the other which is worth around £275,000. My rental income is currently £1,200 per month and I have never had a problem renting out the flat as it is close to the tube in Zone 2.
I am considering remortgaging my existing BTL for £150,000 to use as a deposit to acquire another BTL in London. However I am also a contractor and my contract is due to end in 4 months time. Prior to this contract I had been without a contract for approximately 11 months but before that had been in almost constant employment through a limited company. During my 11 months out of work I dissolved my limited company.
The questions I have are:
1. Will my lack of income during the 11 month period count against me getting both the existing BTL remortgage and the new BTL mortgage?
2. Will the limited remaining time in my current contract count against me?
3. Will the income of my limited company over the past 3 years be admissible even though it is now dissolved?
4. Is there a limit to how much I can borrow for the new BTL? E.g could I borrow £350,000 to purchase a flat of £500,000 if the proposed rental income was 125% of the mortgage repayment?