Mortgage consent to let v.s. buy to let

Spamelina

I currently own a flat that is mortgaged with Alliance and Leicester on their SVR of 4.99%. I had no option other than to roll on to their SVR when my fixed rate ended last year as I didn't have enough equity to remortgage. I moved out of the flat last year and started renting it out, I obtained consent to let from Alliance and Leicester. My partner and I are now planning on purchasing a property together and want to try and keep my flat as a rental property, but I'm just concerned that although the A&L may let me keep consent to let, if interest rates rise then my payments are going to go up and up.. meaning that keeping the flat is unsustainable. I believe that I have about 15% equity in the flat, but A&L refuse to allow me to switch a fixed rate deal with them as they say there is less than 10% equity, they won't re-value the property and are only going on their tables/statistics. Do I have any options to try and remortgage this property to a 2 year fixed rate deal? Does anyone know of any lenders that allow you to remortgage to them with consent to let? I just want to try and safeguard my payments for at least the next couple of years.. I can't go to buy to let mortgage as there isn't enough equity. If interest rates rise I think I will be forced to sell!
Any advice appreciated

Thrugelmir

Spamelina wrote: »

If interest rates rise I think I will be forced to sell!

Longer term interest rates are going to rise.

May be worth realising the equity and reinvesting it into your new home.

When remortgaging lenders will be looking for you to move onto BTL deals if the property is let. So no savings if that is the case.