IF Mortgage - anyone gone on to rent property out

QTPie

Hi

We have owned our home for 5 years and have an Intellegent Finance mortgage. We are currently on SVR: have been looking to sell for the past year or so, but not gettign anywhere (after a nasty gazunder a few weeks ago ).

Ideally I would like to:
- draw down some equity (we currently have about 70% equity) for a potential deposit on a new house. I would look to leave 45% equity in the house.
- Use the IF offset mortgage feature to keep that drawn down 25% equity in a savings pot (wouldn't be looking to buy immediately).
- At some point in the next 7/9/12 months, move into rented accomodation and then probably rent this house out.
- Rent for a while and then buy another property. Keep hold of this house (rented out) until property prices stabilise a bit and we can sell it. This is not a complicated "profit making" scheme, it is just that the houses that we want to buy are current still asking "late 2007 and then some" prices, whilst buyers of our property are demanding (probably rightly so!) "2004 or less" prices. We cannot afford to buy at "late 2007 and then some" prices, but sell at "2004 or less" prices... :rolleyes:

We want to upsize before having a baby (which, at the moment, is taking it's own sweet time to get underway...), so are looking at alternative ways to try to do it...

I am not a huge fan of IF mortgages (am sure better deals can be had), but like the idea of drawing down the equity and still using it to offset the interest UNTIL we need the desposit (I am guessing not for a year or two). We don't HAVE to move yet, but am thinking that it might be a good time to draw down the equity (keeping it safe in the savings pot).

Has anyone experience of having a mortgage with IF and then deciding to let out: did that have any affect on their off-set mortgage? I would obviously come clean with IF when finally deciding to let the property out (I do not believe in lying about it).

I am just wondering if it WOULD be a good move to do this? If not, waht are the alternatives? Changing mortgage providers, going for a BTL mortgage straight away and, hence, moving out straight away?

Sorry for lots of questions... really trying to get a feel for things...

QT

feisty1

Legal or Not?
Hi All

Im emigrating to Oz next week and have been unable to sell my house.

intend to rent it out and wait for the property market to make its mind.

We have a mortgage with If, Now they do not allow Buy to Lets, and i am unable to get another Buy to Let Mortgage due to the property being close to neg equity.

http://forums.moneysavingexpert.com/showthread.html?t=1461263

QTPie

feisty1 wrote: »

Legal or Not?
Hi All

Im emigrating to Oz next week and have been unable to sell my house.

intend to rent it out and wait for the property market to make its mind.

We have a mortgage with If, Now they do not allow Buy to Lets, and i am unable to get another Buy to Let Mortgage due to the property being close to neg equity.

http://forums.moneysavingexpert.com/showthread.html?t=1461263

Hi feisty, will forgive you for piggy-backing...

So IF will not allow you to convert your existing mortgage to BTL AT ALL? Where did you get this? Ts & Cs? Talking to them?

If so, very interesting - means that I would definitely have to change mortgage providers (and probably loose the offeset... don't think many porviders offer an offset )

QT

QTPie

QTPie wrote: »

Hi feisty, will forgive you for piggy-backing...

So IF will not allow you to convert your existing mortgage to BTL AT ALL? Where did you get this? Ts & Cs? Talking to them?

If so, very interesting - means that I would definitely have to change mortgage providers (and probably loose the offeset... don't think many porviders offer an offset )

QT

Please ignore that, am now reading the linked to thread... THANKS Feisty!

QT

Rick62

Or according to this (rather old thread) they will give permission, but will charge for it. http://forums.moneysavingexpert.com/showthread.html?t=502303

Best thing is to call them and ask what their policy is if your circumstances change and you want to let the property out, under a 'consent to let'.

QTPie

Rick62 wrote: »

Or according to this (rather old thread) they will give permission, but will charge for it. http://forums.moneysavingexpert.com/showthread.html?t=502303

Best thing is to call them and ask what their policy is if your circumstances change and you want to let the property out, under a 'consent to let'.

Will look at my Ts & Cs and call, thanks

payless

From my experience they will consider a consent to let - BUT charge a fee and poss load rate .. they also withdraw any drawdown or further advance options

QTPie

payless wrote: »

From my experience they will consider a consent to let - BUT charge a fee and poss load rate .. they also withdraw any drawdown or further advance options

So there are probably better options out there...

Of course, could draw down now and offset... Then look to move the mortgage across to another lender's BTL when we are ready to rent out (putting the draw down somewhere safe).

QT

feisty1

QTPie wrote: »

Will look at my Ts & Cs and call, thanks

i've just looked at t&c's, just the standard you must ask us if etc.fone no 0845 609 4343.

koexelek

The trouble is, the lenders keep moving the goalposts these days.........last time I raised this subject with them , they said 100% categorically that they would not give permission to let. They might have relaxed that rule again now though

feisty1

koexelek wrote: »

The trouble is, the lenders keep moving the goalposts these days.........last time I raised this subject with them , they said 100% categorically that they would not give permission to let. They might have relaxed that rule again now though

No, nothing to suggest they do or dont, just the standard you must call us if etc.............IF in my experience are not flexible