Buy to let

helen_clare

I'm currently in the process of letting my flat in an attempt to get on top of my finances.
I have quite a large percentage of collateral to mortgage and the rental value of my property is quite high but my income has been hit really hard in the last two years.(hence the need to get on top of my finances) Will I find it hard to get a buy to let mortgage?
I know that my lender is willing to convert my current mortgage but it's stuck on a very uncompetitive rate and I would very much like to be shot of it..
Could someone recommend a site/independent advisor who would be able to help me, please?
Thanks
HC

Wh05apk

Helen Clare,

You have a number of issues there:

You say your rate is "stuck on an uncompetitive" rate, so I assume you are tied in? if so there will be penalties.

BTL remortgage rates are high, I suspect probably higher than your current rate? particularly if you have to take your penalty into account.

BTL remortgages will require about 25% deposit/equity, do you have that?

You said your income has been hit, most lenders require a minimum income of £25-35k, and/or do not allow people to remortgage their current resodential property.

Taking the above into account you will probably do best staying with your current lender, but if you let us know:
Prop value / Mortgage amount / rate & if tied in then perhaps we can help more, you probaly don't want to shout your income out on here, but does it meet the above criteria?

I assume your credit is ok? if not then you have no choice, but to stay where you are.

Mickyfinn

You could enquire about consent to let from your existing lender, it may be cheaper than changing to a buy to let mortgage however if your rate is already high your lender may increase it further.