Renting out current property and buying somewhere new.

[MarshPhantom]

Thinking about moving but would like to keep our house and rent it out. We could put together a decent deposit and wouldn't be relying on the rental income to pay the mortgage.

Anyone have any experience of doing this? Would getting a mortgage be simple enough?

Thanks for looking.

[Sarnie]

It's simple enough but entirely dependant on all of the numbers involved...

[craig-A]

I was in a similar situation just over a year ago, provided the rental income covered the mortgage payments of the property I was moving out of(it did) and could come with a decent deposit (25%) on the new place was enough to satisfy the mortgage company.

[CRB14]

What sort of equity would you need in your current place to be able to rent out?

I know you can get a consent to let but some providers can be funny.

[Dick Dastardly]

Bear in mind it isn't enough these days for the rent to just cover the mortgage, as many lenders want to see a buffer. One of mine will only lend on 75% of the rent, so there is 25% left over, to cover things like void periods and maintenance. With these new mortgage legislation changes, it'll now be even tougher.

[thekingisdead]

Dick Dastardly said:

Bear in mind it isn't enough these days for the rent to just cover the mortgage, as many lenders want to see a buffer. One of mine will only lend on 75% of the rent, so there is 25% left over, to cover things like void periods and maintenance. With these new mortgage legislation changes, it'll now be even tougher.

BTL mortgages are not bound by the usual mortgage rules so I don't think the recent changes will apply.

The OP will either need consent to let off current lender or swap to a proper BTL mortgage.