Buy to Let - Options?

Claire2_2

Hi

I have a bit of an issue I hoped someone might be able to help me with.

Last year, I decided to take a sabbatical from work, so I rented out my property and received 1 years permission to let from my mortgage lender. At the same time I moved onto interest only whilst I was on my sabbatical.

My plan was to move the mortgage onto buy to let with the same provider on my return, as I discussed with them at the time.

Whilst away, my tenants wanted to sign on for a further year, so I snapped them up as I no longer want to live in my property and am unable to sell due to the lack of movement in the market.

On my return, I spoke to my lender who announced that yes, I'd have to go onto buy to let, or move back into the property, but that oops, they no longer offer buy to let mortgages.

The mortgage lender has now written to me several times, and has put me onto standard variable rate as I have not responded.

I feel stuck - I don't want to move back into my property - I'm renting elsewhere, but I can't get a buy to let mortgage as the equity in the property isn't high enough (it's 75% mortgage).

If I do nothing, can the lender force me to move to another lender? I'm really not sure what to do.

Any bright ideas?

Thanks for your help

happybroker

you can still get a buy to let deal at 75% but the fees are quite high and the rates are probably higher than the standard variable that you are on.

If the lender is refusing to grant you permission to let the property then your tenancy agreement may be unenforcable which could cause you problems in the future, you may also have an issue with your buildings insurance.

The lender can't force you to leave them but if you are in breach of your mortgage conditions they can register a default against you. Not speaking to them isn't the best idea.

Speak to a whole of market advisor with some experience in this area. You will, no doubt, get a load of people posting on here saying "nuts to the bank, don't worry about consent" but be carefull.