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Converting residential mortgage to Buy-to-Let

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  • de1amo
    de1amo Posts: 3,401 Forumite
    Combo Breaker First Post
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    even if you are expat you have to pay tax on rent as normal-its business income.
    --if your out of the country you lose your tax number which stops any allowance as well.
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
  • jee
    jee Posts: 288 Forumite
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    Halifax consent to let rates are a rip off. I'm remortgaging, from residential to buy to let, with Natwest. Free valuation and legal work. BUT my borrowing ratio is 75:25.
  • Notmyrealname
    Notmyrealname Posts: 4,003 Forumite
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    karenbarnett wrote: »
    I'm not just talking about the 2.5% arrangement fee, but the Valuation fee at £390, plus conveyancing fees (I've been quoted £499).

    Is it just me, or are these fees ridiculous? I'd always thought a valuation was £150...
    Are there other 'hidden' fees that I dont know about? What have other people paid?

    Any advice anyone can give me would be amazing.

    Thanks

    When I got a LTB mortgage 2 years ago, the fees were about £2k all in.

    Its a business. What you pay in fees are tax deductible.
  • SuzieSue
    SuzieSue Posts: 4,096 Forumite
    First Anniversary First Post Name Dropper I've been Money Tipped!
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    Gilea22 wrote: »
    I went to the Halifax and said I would be renting out my house after 7 years as a residential owner and they said I had to remortgage and the costs were over £1k for each offer they gave me plus it was 3 point above my present mortgage. It was said on a take it or leave it basis as I explained I would be paying more monies than I did on my present mortgage over and above the rent and insurance I would be taking out.
    Other lenders are not so good and I agree "The Mortgage Works" offer does seem to be the best on a remortgage but again your fees which could be added to the mortgage are very high.
    The banks borrow at a ridiculously small interest rate and then screw their clients espicially as the government own a huge share of the Halifax!!
    Anybody got any good ideas:(

    You could try taking out a fixed rate mortgage with them and then they should give you consent to rent for the period of the fixed term without any charges.
  • rt123
    rt123 Posts: 1 Newbie
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    jee wrote: »
    Halifax consent to let rates are a rip off. I'm remortgaging, from residential to buy to let, with Natwest. Free valuation and legal work. BUT my borrowing ratio is 75:25.


    Hi Jee,

    I bought my first house last September with Natwest as well but might have the oppotunity to move abroad with my work in about 12 months.


    How did you find the process & cost with Natwest? I already had to go with an extortinate rate in the first place because at 25 I didn't really have a credit rating and so went with my bank.

    I'm pretty lost with how to go about this and a concerned about the cost - any advice at all would be welcomed.

    Cheers,
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