mortgage advice

slugger230

hi,

i have a fixed rate (about 5%) which runs for another 7 years or so. i have to leave the property (moving jobs) and let it out. i wondered if there was anything i could do, obviously a buy-to-let mortgage would be interest only. i could achieve about 675pm for the property but the mortgage payments are 700. so im losing about 25pm, if it was interest only the repayments would only be about 510 so i would be making money. is there anyway to structure this differently? or am i fixed.
ps: will there be a penalty when i tell my bank about it being let?

thanks

hillcats

Before you consider this, have you spoken to / the required permissions from your lender?

HarveyGal

slugger230 - I lurk and read but know very little...I think you may receive permission from your lender to let out your property without necessarily switching to a buy-to-let mortgage. If they do give permission, perhaps they may allow you to switch to an Interest Only deal, rather than capital-repayment (but still within your 5% fixed rate deal)?
I think you need to talk to them.
Hope a more informed poster can tell you more.
Good Luck.

Alisonb1975

You will definetley need their permission. When we changed our main home over to a rental a number of years ago they also added an extra 1% onto the interest. You must really make sure that you can afford the current payments for gaps when the property isnt let. It did become a bit of an issue for us and we only stuck with it for 3 years before selling.