is this possible? Oprions???

ecw2002

We currently have a house worth £125k with outstanding £100k on mortgage

We love a bigger house nearby worth £150k. If we were to buy this new house with no mortgage, how hard is it to rent out the house we live in now and change to a BTL mortgage.

Big problem is we have defaults. All debts will be cleared but I know we will have bad credit rating for at least 6 yrs.

Do mortgage companies let you swap to BTL without credit checks. I know we can change mortgage products without a credit check.

This is all hypothetical at mo. I was just wondering if there is anyway around it.

kingstreet

You don't need to change the mortgage on your current home, nor will you be credit checked. You need to ask your lender for consent to let. Hopefully they will agree although they could increase the interest rate. You will need the permission of your buildings insurer, or to change to a product designed for non-owner occupiers.

Remember, the rental income you receive is taxable, although the interest payment on the mortgage (not the capital though) and associated maintenance and management costs can be deducted.