Buy to Let

Acoustic_2

Help!
I'm hoping someone can help us!!
My husband and I are looking into buying a house but we first don't have a deposit so we will need a 100% mortgage and second we are moving back to South Africa in 8 months time, we want to keep the house as an investment so we would like to rent it out, will the motgage lenders penalies us for taking out a 100% mortgage because we will change to a Buy to Let mortgage?
Anyone got any advice for us??
Regards
Acoustic

HGLTsuperstar

You wont be able to simply switch to a BTL, as these require around 15% deposit, which you don't havr and I'm hoping house prices wont rise that much in 8 months. Is your move to SA permanent? Some lenders will let you rent out, usually for a set period like 2 years, for an extra 1% on your current rate, but this is at their choosing and they would be more likely to agree to this if you had put something into the house, so if you can stretch to a 5% deposit then all the better, as you'd also get a better initial rate aswell.

silvercar

Often lenders will relax their 85% LTV and 130% income cover rules if you are asking permission to rent out what is currently your home. They probably will add upto 1% to the mortgage rate! From their point of view they are already lending on the property and want you to be able to afford the repayments.