Buy to Let Mortgage Effecting Self Build Mortgage

[paulc313]

Evening,

 

I currently own my own home with a standard mortgage. In the next 6 months I'll be applying for a self build mortgage. I own the land that we are building on and my father in law is the builder/project manager (He builds houses as a profession). My intention is to use the land as a deposit to get the self build mortgage. I've had this confirmed as being ok to do so by build store, however some mortgage providers don't accept this which I'm ok with.

 

In the background to this however, I am looking to get a buy to let mortgage for a property I have seen as an investment with a friend. This will be my first buy to let mortgage. I've ran some numbers and even with modest to medium interest rate rises I would still be fine with the salary I'm on and my current mortgage. I was just wondering if the buy to let mortgage will effect the self build if they are say 3 months apart? I've asked build store and they said that most banks etc will ignore the buy to let mortgage so I have nothing to worry about in getting the self build as long as the rest of my finances stack up. Is there anyone who has been through the self build mortgage process who has a buy to let mortgages as well? If so can you tell me what your experience was like and how the banks treated the buy to let mortgage?

 

Thanks

 

Paul

Edited January 7, 2018 by paulc313

[nod]

I’ve several buy to let’s 

and they are totally different to a normal mortgage The lender will take into consideration your ability to pay should the property become empty Or your tenant decides not to pay for the next six months

My advice would be to get your selbuild mortgage agreed first

[Ferdinand]

I would say get the self-build one first if you worried.

 

But also talk to a broker to run your numbers on Btl first ... due diligence is much more than it was.

 

Also if You are the higher tax rate bracket your mortgage payments over the basic rate threshold will be treated as if they were income not expenses within a few years. So talk to your accountant to make sure that you will actually make an income.

 

And think about the management and the mountain of regulations too, attending an appropriate suite of courses. If you are in a landlord registration area in England it will add £10-20 per month. Cheaper in Scotland.

 

You may find this appraisal calculator helpful, as a calculator or checklist. I think it will do the calculations without requiring your email address.

https://www.property118.com/calculating-rental-yields-and-returns/

 

Ferdinand

Edited January 7, 2018 by Ferdinand