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Buy to let mortgage - do you have to let?
HotTrot
Posts: 97 Forumite
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Comments
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No, you don't have to let it. So long as you keep up the repayments you don't have anything to worry about.
BTL mortgages are more expensive than a normal mortgage so if you don't have any intentions of letting out the property, try sticking to the residential mortgage as it will save you a lot of money.0 -
why dont you let it to yourself -problem solved“Life isn't about finding yourself. Life is about creating yourself.”
― George Bernard Shaw0 -
No you can live in it no problem. Mother in law has 2 houses and currently lives in the B2L and rents out her main home x0
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No you can live in it no problem. Mother in law has 2 houses and currently lives in the B2L and rents out her main home x
Depends on the terms of the mortgage.
Residential mortgages are obtained on the basis of income. BTL mortgages are obtained on the basis of potential rent. To apply for a mortgage by declaring an expected rental and then living in it ie you had no intention of letting it, would be fraud.
It used to happen in areas where rents were very high and people couldn't get the mortgage based on salaried income, so would get a BTL mortgage based on potential rent. Now that BTL mortgages are significantly more expensive and require higher deposits than residential mortgages this is less common.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Depends on the terms of the mortgage.
Residential mortgages are obtained on the basis of income. BTL mortgages are obtained on the basis of potential rent. To apply for a mortgage by declaring an expected rental and then living in it ie you had no intention of letting it, would be fraud.
It used to happen in areas where rents were very high and people couldn't get the mortgage based on salaried income, so would get a BTL mortgage based on potential rent. Now that BTL mortgages are significantly more expensive and require higher deposits than residential mortgages this is less common.
Neither are offical B2L, its a 'Notice to rent' mortgage which a lot of people don't realise you can get ive found out.
OP not sure why you want a B2L to live in when the deposits are higher but you can change normal mortgages into rental and only pay a very small fe under £100 - have you looked into this? x0 -
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theartfullodger wrote: »I bow to your superior knowledge. Could you give a link / whatever to a UK provider of a "Notice to rent" mortgage?? It's a new one on me and I'm about to mortgage a property.
A new mortgage product. Very interested to hear how it works.0 -
New one to me too!!
Its a consent to let though not notice to rent, could never remember that!
We are selling our home at the moment and spoke to the mortgage advisor last week about the possibility or renting ours out and they told us the exact same, cost £95 a year and you can rent it out.......same payments everything nothing changes apart from you are legally allowed to rent it out. My mortgage company is Allience and leister which is now Santander.
Have a look or ring about, I think you will be suprised!!!!!0 -
Read about it hear, quite suprised regulars like yourself are not aware of all the mortgage products about-learn something new everyday! x Also lots of posts on here about it.
http://www.lovemoney.com/news/make-good-property-decisions/buy-to-let-investments/rent-out-your-home-as-a-buytolet-3762.aspx0 -
Read about it hear, quite suprised regulars like yourself are not aware of all the mortgage products about-learn something new everyday! x Also lots of posts on here about it.
http://www.lovemoney.com/news/make-good-property-decisions/buy-to-let-investments/rent-out-your-home-as-a-buytolet-3762.aspx
That's a link to an article published in August 2009.
Some lenders criteria has changed since then.0
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