Mortgage Advisors - Need some advice

samnorris2

Hi,
I'm currently looking to remortgage and been looking at a 5 year fix deal with Northern Rock. It will allow me to overpay as much as possible, which I need.

Questions is, I'm fixing the 5 year deal but in a year or two may be moving away. If I do I will want to keep the house and rent it out. Would I need to convert to a buy/let mortgage or anything different than the fix I would be on above? Or can I repay the mortgage as normal with the income from the rent?

Thanks

TEDDYRUKSPIN

These answers can only be answered by Northern Rock if you are deciding to use them. Many financial institutions have different criteria upon allowing you to rent out the property on a residential mortgage.

One example, one might not let you rent it out under the mortgage residential rules and therefore you must quit the package and pay an early repayment charge. Then you pay another exciting fee for a new buy to let package.

Another would be one would allow you to rent for one year but you will still have to convert it to a buy to let eventually.

The really question is! Why 5 years if you have something set on your mind upon moving and renting within this period of time? Would'nt it be sensible to obtain a different fixed or even variable package?

Only you can answer this.

samnorris2

The move is not set in stone yet. Our mortgage term is up in August which is why I'm looking now and the decision to move may not be until mid next year. I'll speak with Northern Rock next week and see what they say. A 2-3 year fix may be more appropriate just now.

Thanks for the comments.

samnorris2

fyi..

I checked with Northern Rock and they said that they could issue a "concent to let" form that would allow me to rent out the property.

£100 for 1 year
£250 indefinitely

They ask the reason for renting it out and that th remaining LTV be <70%

They said after the 5 year deal I could move onto a buy-to-let then if I wanted to take the advantage of an intro rate.

Works out not bad