Letting on non BTL

applesrace

Hi all,

The title may be a little mis-leading to start but here's the situation. My partner and I are currently looking at a remortage. We'd like to take a long term fix of 5 to 10 years. After two years we will be looking to move but keep the property we have and rent it out.

My question is which lenders are most likely to let us do this ? .... Or maybe my question should be, is this possible? Will we have to change to a BTL after the two years - in which case is a long term fix out the picture?

Many Thanks

inmypocketnottheirs

You will need the permission of the lender to rent out the property. If your lender will allow this then you should not have any problem. Normally the only need to have a BTL mortgage is when you wish to buy a vacant property and tenant it without occupying.

As long as your lender will allow you in the future to let the prperty then as far as I can see there should be no need for a BTL mortgage.

HTH

applesrace

OK thanks. That's what i thought. I had heard particular lenders where more likely to allow you to rent your property. Is that true ? If so does anyone know which?

dwight-van-man

Hi, most lender will allow you to let the proeprty as long as you have been in it yourselves for a reasonable time and it doesn't look like you bought it specifically to let but lived in it for six weeks to get a cheaper mortgage. What you will need to look out for are lenders who, while giving you consent to let, also load the interest rate to reflect the increased 'risk'. You may also find that many lenders do not have a specific policy for this, instead dealing with every request on basis of merit. I can only give you one lender example as I am not a broker and this is Northern Rock. Currently, they will generally grant consent to let if the mortgage has been running for six months and the payments are up to date and will not load the interest rate. If however, additional borrowing is required at the point of requesting consent, you will likely have to convert to BTL. This as I mentioned, is not a policy as such and as with any lender, you need to bear in mind that the situation when you arrange the mortgage initially may change by the time you come to let the property out.

Conrad

Apple, many people Ive known over the years dont inform the lender, shock horror! None have ever been found out and even if they were you would simply remidy at that point and tell the lender you have only just let it!

Watch the buildings and contents insurance however and make sure that they know it will be let when the time comes or your cover could be renderred invalid.