Problems with Buy to let Mortgage. Help

Baz_500

My son has just got a new job in another part of the country. He has lived at his present home 5 years. The family got together to provide him with funding him to but down a deposit on an 85% mortgage.

He now wishes let this property to help fund renting in the area in which his new job is. The prices there are far higher than here on Tees-side.
The buy to let mortgage providers do not seem to offer anything better than an 80% mortgage, and he has little savings to go towards this. The property is a small victorian terraced house, which may not have gained much in value, but certainly there will be no negative equity.

Is there a way around this problem, or would he be better to simply sell this home?

Thanks Baz

dimbo61

Why does he need a BTL mortgage ?
could he not approach his existing lender and just ask for "consent to let"
Some lenders ( but not all!) will allow this for a period of time up to 3 years if he explains that he is moving to a different part of the country due to work.
As long as he gets consent to let and changes his insurance to landlords insurance , has a gas safety check, electrical safety check, and smoke alarms/security lighting installed

Baz_500

Thanks for you quick response. I am lead to believe that he has already approached his lender, Birmingham Midshires, and has had a negative response.

Baz

dimbo61

Speak to a "whole of market mortgage broker" with experience in BTL mortgages

JQ.

I would also get a couple of EA's round to give a realistic opinion of value - be specific, don't tell them why, but make sure they understand that it's important to know what it will actually sell for.

No point going down the route of BTL and the costs associated with that if it does transpire it's actually dropped 10% from 5 years ago. Alternatively if it's risen 10% he might be worrying about nothing.