We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Buy To Let or Residential?
Hufflepuff_2
Posts: 25 Forumite
Hi,
I own a house, which is currently rented out - there is no mortgage as I inherited the property.
I have been to see a Mortgage Adviser because I would like to release some equity (25K). He has said I would need a Buy to Let Mortgage but because I do not have a mortgage of my own it might be possible to do as a 'residential'
mortgage because the rates are better.
Could anyone advise me of the implications of this?
Thank you
I own a house, which is currently rented out - there is no mortgage as I inherited the property.
I have been to see a Mortgage Adviser because I would like to release some equity (25K). He has said I would need a Buy to Let Mortgage but because I do not have a mortgage of my own it might be possible to do as a 'residential'
mortgage because the rates are better.
Could anyone advise me of the implications of this?
Thank you
0
Comments
-
Report him to both the FSA and the lender concerned.0
-
On the amount of money you are looking to borrow, there will not be a great deal of difference between residential and buy to let rates.
Best to do it on the buy to let from day one, then you won't have the worry of a lender potentially finding out a house is rented out when it should not be. If that was the case, they could charge you a fee and up the rate, or even insist that you repay it there and then.I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
As youo do not live their and it is rented out it is a buy-to-let (unless immediate family members rent it out.
It'll only slap you in the face if you do it on a residential and have residential insurances for the property. If they trashed the place you will not be covered. As someone said the rates on low LTV for BTL are not that much different to BTL so for the sake of a few pounds per month do it properly. I assume you rent as well, as if you have a residnetial mortgage yourself then there is no option but to do a BTL.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Take advice with a pinch of sea salt!0 -
If you have an interest only BTL mortgage on the property then you can put the cost of the mortgage against the rent you charge when you declare your earnings to the nice TAX people.
See/ get an accountant !0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards