Remortgaging when house is rented out

petalpie_2

Hi there
I just wanted to clarify my situation as I have been told different things by different people.
I have very recently moved house and I am now renting with my partner in Brighton. I own a flat in London which I am planning to rent out. The mortgage on this is due to come to the end of its 2 yr fixed term in November and I ned to look at alternatives. I currently have a fixed rate mortage with Alliance and Leicester and they have told me that I can have any of their products and as long as I tell them I am renting and then I just pay them £99 a year for the priviledge.
BUT when I spoke recently to a broker they told me I would have to get a 'buy-to-let' mortgage which I would rather not (as the deals aren't as good)but they were adament that I would have to this rather than a normal 'domestic' deal. I personally don't see why I should if I am renting myself and it is my only mortgage?
Can someone advise me on the best thing to do.

Also as an aside would a variable tracker be best at this point in time or a fixed rate and where are the best deals to be had?
Sorry so many questions, would really appreciate this help and many thanks in advance.

TG of Brighton

Mateus_2

Hi

As you lived in house and have been with the lender for a few months, the lenders normally allow to rent the property, some charge a small fee as per your case. But I would say that normally when the deal comes to an end and the lenders offers you another deal and they know the house is being rented they will only offer buy to let rates. If they do not know they will offer you residential rates and then ask you to advise them afterwards that the house is being rented. The buy to let rates are almost the same as residential rates only the arrangement fees can be higher. You should compare the new deal with A&L and a BTL product to see if is there any advantages as sometimes worth to change to BTL mortgage.

Cheers
Goncalo