Mortgage Query - Difficult Situation?

SureshM

Hi,

I am due to get married later this year and would like to purchase a house with my partner. However, I already have a flat which I live in and it is tied into a fixed rate mortage with 3 years remaining. We dont want to live in the flat as its too small and hence would like to rent it out, but would our new mortgage be classifed as a first time buyer given she does not have a property? If not, is there a way i can do this, e.g. become a guarantor? Furthermore, will my flat then revert to a BTL mortgage? I am trying to work out the best way to position myself for the two mortgages and would ideally like to take out a FTB mortgage on the new property, however they would not allow us to borrow what we require on just her salary.

Many thanks for your help.

Thrugelmir

Which FTB mortgage are you hoping to obtain?

You need to speak to your lender regarding letting your existing property. As conditions and terms do differ.

SureshM

Well FTB mortgages are better in general, hence I did not want to be excluded from these.

Thrugelmir

SureshM wrote: »

Well FTB mortgages are better in general, hence I did not want to be excluded from these.

Depending on your financial circumstances. You could possibly obtain a far better interest rate by selling your existing property and investing the equity to improve the LTV on the new property.

Conrad

No such things as 'better' FTB mortgages. The option is a second mortgage at 85% ltv. As long as your credit is good, it should be doable.

herbiesjp

If you want to keep you current place and rent it out you will either need consent to let from your current lender, or you will need to convert it to a BTL mortgage.

It will not automatically revert to a BTL.