Nationwide - changing residential to buy-to-let

Cameron1983

Hi

Im looking for a quick bit of advice from people who may be able to advise...

I have a repayment mortgage with Nationwide for approx £100,000 on a flat worth approx £125,000. I need to move for my job, but rather than sell in a poor market would rather let it out.

I estimate I would make approx £625pcm for the flat based on others nearby. My current repayments are about £610 but that would fall when my fixed deal falls soon from 5% to 3.5%. I have an income of approx £50k/year in a secure job (long-term contract), and have a little in savings to invest in the mortgage if needed.

My main question is whether Nationwide are generally happy to change the mortgage, whether they are likely to charge a fee (I see Mortgage Works owned by Nationwide charge 2.5% up front), and what I would do if they say no? This is the only property I have.

Thanks for any advice/suggestions (I dont want to phone them straight away in case they say no and Im left in a pickle!)

Thanks:beer:

KKevin_2

Why dont you just let the flat out?

There is no need to change the mortgage, unless you are looking to buy another flat to stay in which you would be best going for a buy to let mortgage or rent.

There is no way Nationwide will ever know you are letting your flat out as long as the letters nationwide send to you do not get returned, so just tell the tenant to forward on any relevant letters from Nationwide.

koexelek

In the past, Nationwide have usually been pretty fair in this situation.... often letting clients keep exactly the same rate for at least a couple of years with no charge ( as long as there is a valid reason for doing it)

Don't know how they view it in the current climate though

Cameron1983

KKevin wrote: »

Why dont you just let the flat out?

There is no need to change the mortgage, unless you are looking to buy another flat to stay in which you would be best going for a buy to let mortgage or rent.

There is no way Nationwide will ever know you are letting your flat out as long as the letters nationwide send to you do not get returned, so just tell the tenant to forward on any relevant letters from Nationwide.

Thanks for the reply, the thought did cross my mind, however I presumably would need landlords insurance, and if I took that out could they cross-check the mortgage company prior to paying out in the event of a claim? It could be a bit of a gamble if they liaise in the event of a big claim etc. Also, having problems created wouldnt look good re. my job as we are required to have criminal records checks quite regularly (Im clean btw!! :A )

KKevin_2

You would just need to take out building insurance for the property, to which you would pay anyway as you are the owner of the property.

With regards to cross checking council tax etc, they wouldnt be able to check that sort of information under the data protection act.

If you change the mortgage it will only be to Nationwide's benefit and it will cost you more.

kazd

Just make sure you get tenants to pass on your post. One guy was on the verge of repossession as his tenants had not passed on any mail or advised him of a home visit and he almost 5 months in arrs.

feisty1

Cameron1983 wrote: »

Hi

Im looking for a quick bit of advice from people who may be able to advise...

You DO NOT get advice on here, you receive opinion and it can be varied ....as you can see from the posts ranging from encouraging mortgage fraud, tax evasion etc, if u require advice see an adviser

Cameron1983

feisty1 wrote: »

Cameron1983 wrote: »

Hi

Im looking for a quick bit of advice from people who may be able to advise...

You DO NOT get advice on here, you receive opinion and it can be varied ....as you can see from the posts ranging from encouraging mortgage fraud, tax evasion etc, if u require advice see an adviser

A lot of your posts seem to be trying to put people down, typing in bold or capitals, or advising them to go to an adviser... very helpful.

poppy10_2

You don't necessarily need to get a buy to let mortgage, but you will need to get consent to lease from Nationwide. Fees for this are usually nominal. you have to inform them, there are all sorts of legal ramifications if you simply let it out without telling them.

feisty1

Cameron1983 wrote: »

feisty1 wrote: »

or advising them to go to an adviser... very helpful.

Thank you