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Residential Mortgage coverting to Buy to Let
Options

Deepok
Posts: 4 Newbie
Dear all
I am new to the forum. Could you please help me by advicing on converting a residential mortgage to Buy to Let so that I can let the property.
I am one of those who has problem paying a very high mortgage due to the change of personal circumstances. I have borrowed from London Mortgage Company (LMC) 183,000 4 years ago. But LMC no longer exist in the market, therefore they dont have any products to offer.
Is it okay to let the property without informing them? According to the mortgage terms and condition I am unable to let. Terms and conditions say a higher interest rate will be applied with other fees.
I am desperate to rent the property. Is there anyone who can advice me how to proceed.
Many thanks.
Deepok
I am new to the forum. Could you please help me by advicing on converting a residential mortgage to Buy to Let so that I can let the property.
I am one of those who has problem paying a very high mortgage due to the change of personal circumstances. I have borrowed from London Mortgage Company (LMC) 183,000 4 years ago. But LMC no longer exist in the market, therefore they dont have any products to offer.
Is it okay to let the property without informing them? According to the mortgage terms and condition I am unable to let. Terms and conditions say a higher interest rate will be applied with other fees.
I am desperate to rent the property. Is there anyone who can advice me how to proceed.
Many thanks.
Deepok
0
Comments
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How much is the property worth? How much would you expect monthly rent to be?
You would be taking a huge risk renting without permission. You corectly say it is against your terms and conditions so you would be in breach of your mortgage.
Landlord insurance would be needed which may alert the lender anyway as they could have a noted interest on the insurance policy. If you did not have landlord cover and something were to happen you would be uninsured.
If the lender become aware it may well give them an excuse to call in the mortgage, especially as LMC are no longer lending and would be keen to reduce their loan book.
You really shoudl explain your situation to them and get consentI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Dear GMS
Many thanks for your prompt reply. I really appreciate it.
My house price has gone down big time. I won’t get even 160,000 now if I have to sell. Also it will take long time to sell. Change of my personal circumstances has made it even harder to carry on with the mortgage.
But one thing is sure; the rent will cover the mortgage. As LMC is no longer trading and it is hard to change lender due to my poor credit history what are my option. On Mortgage terms and conditions it says higher rate of interest and other fee but it doesnt specify anything about the interest rate and charges. Do you have any idea about their Buy to Let mortgage interest rate?
Many thanks again.
Deepok0 -
You are in negative equity so have no options elsewhere.
All you can do is speak to LMC and ask for consent to let. Point out that you are in financial difficulty which is the reason for wanting to rent, and that sale is unlikely to clear the mortgage.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Many thanks for your help. I was wondering whether you know anything about their Buy to Let mortgage rate?
Deepok
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A slightly higher rate on an agreed basis is better than deceiving them, then they find out somehow, and impose a punitive interest rate which maybe the rent cannot cover...
If you are in financial difficulty and have poor credit history, you need to visit the other forums for advice on the wider issues. Someday you will need to remortgage; whether buy-to-let, consent-to-let or residential, you need those issues minimised even if they cannot be entirely resolved.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Many thanks for your help. I was wondering whether you know anything about their Buy to Let mortgage rate?
Deepok
As they are not lending they will not have a rate. There may be a loading to be added to your current rate to allow letting but that is something you would need to refer to your terms and conditions for, or call them and askI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
OK. Many thanks.0
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