buy-to-let to standard mortgage

pool-hustler

i have a scenario I need advice on.

1. Two properties (one is buy-to-let)
2. Sold the live in property moved into buy-to-let
3. no profit made
4. Do I have to change mortgage. I will lose tracker!!
5. When I go to sell is there a capital gain, or do I just switch to standard mortgage to avoid that? Are there any pitfalls here??

socrates

Try the mortgages board with this one

pool-hustler

i'm new to this. is there a link?

socrates

Do a forum jump bottom right from this screen and post the same question there

silvercar

I don't understand your last question. There is a capital gain if you sell for more than you bought (less buying and selling costs). Mortgages are not involved in the CGT calculation.

gordano_2

You have two separate questions to answer ..

1 - do you need to switch mortgage
2 - capital gains.

Agreed with the prev post, you would benefit by asking the mortgage question in the mortgage section.

IMO, for Q1, I doubt that the lender will mind on the basis that buy-to-let mortgages are seen as higher risk than homeowner mortgages. But as the terms of the mortgage has changed you probably have a duty to inform your lender anyway - but seek advice from a mortgage expert

Q2, this property has become your main residence, from this date on you are not liable to capital gains on any increases. You should however seek advice from a tax expert on how this works, in particular with respect to any previous increases in value since you purchased the buy-to-let.
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