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Changing a mortgage from residential to BTL (Abbey)
mel19632
Posts: 647 Forumite
As per the title, has anyone had experience with this? Do you know how flxeible Abbey/Santander are?
Do they insist on a certain % equity in the house, or will they just change the mortgage to BTL on whatever products they have available?
Not planning this just yet, just wondering if anyone knows about it.
Thanks
Do they insist on a certain % equity in the house, or will they just change the mortgage to BTL on whatever products they have available?
Not planning this just yet, just wondering if anyone knows about it.
Thanks
Paying down the mortgage:
At 1 October 2011: £226,000
Currently: £224,499
Aim: 85% LTV (£212,500)
Paid £1,500
Target remaining: 88.89%
At 1 October 2011: £226,000
Currently: £224,499
Aim: 85% LTV (£212,500)
Paid £1,500
Target remaining: 88.89%
0
Comments
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Standard BTL mortgage terms are 75% LTV and rent covering 125% of mortgage as if on interest only basis.
You need to speak to them.0 -
thanks - thought that would probably be the advice! we are not looking to do this anytime soon, but thought i might as well see what experiences others had.
i guess we will have to make sure we have a good amount of equity in the house and see whether the rental figures stack upPaying down the mortgage:
At 1 October 2011: £226,000
Currently: £224,499
Aim: 85% LTV (£212,500)
Paid £1,500
Target remaining: 88.89%0 -
Currently Santander (Abbey) will allow anyone to rent out their property. They have taken the stance that if they don't allow you to do it, you will do it anyway.
Talk to the mortgage centre - there may be a fee - depends which product you are on and make sure you change your home insurance..I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Currently Santander (Abbey) will allow anyone to rent out their property. They have taken the stance that if they don't allow you to do it, you will do it anyway.
Talk to the mortgage centre - there may be a fee - depends which product you are on and make sure you change your home insurance..
Are they imposing criteria?
(I'm not looking to do this myself I should add).0 -
We did exactly this 18 months ago with A&L (now Santander) they permitted switching existing mortgage to BTL basis with no change to terms/product. Only requirement was that rent covered the mortgage. cant recall now but dont think they insisted on being let by ARLA registered agent or was managed by them although we did indeed do this. Living in Spain we couldnt keep an eye on it ourselves!
There was an annual fee of £95 for the privilige and was all done over the phone.
Process may not be the same with Abbey though as each Lender still running their own rules at the time.0 -
Brilliant - thanks to everyone who answered!Paying down the mortgage:
At 1 October 2011: £226,000
Currently: £224,499
Aim: 85% LTV (£212,500)
Paid £1,500
Target remaining: 88.89%0 -
wodgerdodger wrote: »Only requirement was that rent covered the mortgage.
This has changed recently in the current climate and now they will allow it whatever, for the reason as I said- people will probably do it anyway.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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