# Keep tracker and get 2nd mortgage new house



## Bulmers32 (27 May 2014)

Hi,

We currently have a tracker on a property (ECB + .75) with Certus. There is 15 years left on it,about 140k- house worth 200k odd.

We are thinking of moving but one idea we were thinking would be could we keep this house / tracker and get a separate mortgage for other house,rent this one out?

Anyone any experience of doing this?

Tks in advance.

B


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## LDFerguson (30 May 2014)

No experience of doing it myself, but as a broker I've arranged it for several clients.  Lenders will discount the rent you're likely to get on the existing house and will also "stress-test" the mortgage repayment to account for future interest rate increases.  So even if the rent is likely to match the mortgage repayments, it will still be calculated as a liability in the assessment for a new mortgage.  

If your income is sufficient to cover the new mortgage repayments as well as the calculated shortfall on the existing property, then it's possible to do.  

Liam D. Ferguson


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## PadKiss (31 May 2014)

Hi Bulmer32
I agree with LD and would add one more plus is the fact it is a tracker mortgage will 'encourage' some lender to account for the rent and that the loan is a tracker in accessing your borrowing capacity. Your income source will also be factored in, in terms of security going forward. Lenders are becoming keener to lend so it might be worth approaching 2 or 3 to establish where you stand. Importantly for yourself factor in what the gross rent is and the net rent is as the net rent after taxes and fees is the real affordability calculator when accounting for rent. Thsi will also help in an application to a lender. A key question is not how much you can borrow but how much do you want to borrow. Use the online calculators to work out affordability, 6% or 7% for standard variable rate and 3%/4% for tracker and if this is workable for you then approach the lenders, hope this helps
Padraic


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## Bulmers32 (3 Jun 2014)

tks for the replies.

our tracker mortgage is approx 750 pm, i think we would get over 1k month ( maybe 1100 ) renting it out based on what i've seen of other houses in the area.

My main concern would be if we moved out of the house, and rented it, would certus not allow this, or would it make the tracker mortgage contract void?

We also have some savings so we have a good lump for a deposit on a new house, both of us in fairly good secure jobs at the moment.

Might go and speak to a few places and see what they say, ideally if would, would like to transfer the tracker but i dont think Certus offering anything like that the moment.

tks

B


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