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    HELP! Converting Residential mortgage to Buy-To-Let?
    • #1
    • 13th Jan 07, 12:44 PM
    HELP! Converting Residential mortgage to Buy-To-Let? 13th Jan 07 at 12:44 PM
    Hello everyone!

    I'm a newbie here!

    I recently bought a flat for 103,000 using a residential mortgage and paid a 5% deposit. My circumstances have now changed and I can't move in. I completed in November and it's still empty.

    I don't want to sell the place, and I was wondering how easy is it to change my mortgage to a Buy-To-Let?

    My mortgage advisor says that if I ask my mortgage company to change so soon after completing, that it will look as if I did it purposely, in order not to pay a higher deposit associated with Buy-To-Let mortgages.

    I want to let it out, because I'm paying rent AND a mortgage. Can I go ahead, let it out to a tenant, keep quiet with the mortgage company and maybe, after a while, notify them that I want to change it to a Buy-To-Let?

    What is the process with converting a residential mortgage to a Buy-To-Let? Do I have to pay a lump sum that I would have ordinarily paid as a bigger deposit when I took out the mortgage?

    I am aware that my interest rate will increase - that is not a problem, but if they also demand a further lump sum of money, to increase my initial deposit value, then I have a problem, as I don't have that sort of money to hand.

    Any help, suggestions and advice would be much appreciated - thanks

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