Remortgage or Buy to let

ajmalkader

Dear Money Savers,
I became a first time buyer in 2007. My discounted mortgage is coming to end of its term. Because I took another job recently I had to move out of the house and rent it. Currently I am renting in another place.

My queries are
1. Do I have to take a buy to let mortgage as my house is being rented?
2. Or Can I remortgage my house in the usual way at the end of the discounted period?
3. If I don't get any new mortgage can I continue on the same mortgage although my mortgage is for FTBuyer?

I await your expert advice.

Kind regards,

Vital_Guy

Technically if letting a house with a domestic morgtage you should tell your bank/lender and they will probably raise the interest rate or switch your mortgage.

Commercial and buy to let mortgages are more expensive. Your insurance may be invalid if through the lender and may be if you havnt disclosed the fact that you let this property. Your first action should be to notify the lender or you may end up in bother. Its always best to do these things by the book let the lender know and then consider the options - buy to let mortages are getting scarce and commercial mortgages also going that way.

You will not be able to remortgage with a domestic mortgage if you let the property and will not be able to keep a first time buyer mortgage if letting the property - really your only option is to notify the lender and see what they say.

Hope this helps.

koexelek

I'd say you would be as well to let it go onto the standard variable rate.

Chances are, this will be a better rate than the current remortgage deals on offer.

Technically, you should tell your lender it is rented ( if you have not already done so)

As you had a valid reason to let it , and it is still the only mortgage you have, they may not charge you anything.

At the very least, make sure you change the house insurance to a lettings policy.

ajmalkader

I checked with my lender they have asked me take a new higher rate mortgage.