Moving mortgage from variable to buy to let

robstocker

Hi All,

I bought a house back in 2008 with a 10% deposit and a 90% variable rate capital mortgage. I'm free to move from this in July this year and keen to get it fixed as soon as possible as I'm sure interest rates will be increasing over the course of the next year.

One Option that I am considering however is to move abroad in around 12-24 months and leave this house here as a rent-able asset and part of my pension fund. My understanding is however that I would need to put this on a Buy to Let mortgage and could only loan a maximum of 75% of the property.

The value of the house hasn't been affected by the drop in prices recently and with the work we have done on the house, I would expect that we could get roughly what we paid for it back. Furthermore, based on this, I currently have 13.75% in the house (minus fees etc, but I think I would pay cash on those).

At an absolute push, I could overpay my mortgage by a certain amount each month (providing interest rates don't rocket) and have just about 25% in the house by the middle/end of next year. But what i'm worried about is when it comes to the day I want to do this, it all depends on the valuation of the house, the exact amount I have in the house etc... and whether it all adds up to borrowing no more than 75% of the house value.

Any one have any advice on what I'm trying to do, or if they have done something similar themselves?

Thanks in advance

R

_Andy_

You may not need to convert to buy to let, your lender may well grant consent to let, meaning you retain residential rates.