Buy-to-let help?

bernie115

Ok - will try and keep this simple.

My step-daughter and her boyfriend are currently living in a property that I own. (i currently live with my husband in his house).

I switched to paying interest free on my mortgage (a couple of years ago) when the house was for sale so i could concentrate on paying back high interest debts. No interest so took it off the market and step-daughter moved in.

My question is do i try and get a buy-to-let deal on this or save as much as I can and keep paying large amounts either each month or pay off a large chunk of each year?

Hope this makes sense and thanks for your help.

Caz3121

is your lender aware you no longer live there? do you have consent to let?

Thrugelmir

Have you declared the rental income from letting to the HMRC ?

bernie115

Thank you for your replies.

Yes my lender is aware I no longer live there and yes they are aware the house is rented out.

I haven't declared this as it is only a minimal amount that I receive from them. Do you have to declare even minimum amounts?

Thrugelmir

bernie115 wrote: »

I haven't declared this as it is only a minimal amount that I receive from them. Do you have to declare even minimum amounts?

Do you make a profit on letting the property?

bernie115

No - the payment i receive is the interest payment i make to the mortgage lender.

CLAPTON

bernie115 wrote: »

Ok - will try and keep this simple.

My step-daughter and her boyfriend are currently living in a property that I own. (i currently live with my husband in his house).

I switched to paying interest free on my mortgage (a couple of years ago) when the house was for sale so i could concentrate on paying back high interest debts. No interest so took it off the market and step-daughter moved in.

My question is do i try and get a buy-to-let deal on this or save as much as I can and keep paying large amounts either each month or pay off a large chunk of each year?

Hope this makes sense and thanks for your help.

what interest rate are you paying currently?

what interest rate would you pay for an BTL mortgage?

bernie115

Not sure what rate i'm paying interest wise (i will get my paperwork to hand)

i haven't even looked around at BTL mortgages as yet - was just wondering what the best way to do this. Thanks for your reply.

Leon_W

You are probably better off as you are.

A BTL mortgage is generally going to be more expensive than a residential, and the fact that a member of your family lives in the property makes a residential loan fine.

Depends what rate you are paying though !

bernie115

Ok thanks - can't believe i don't know the interest rate on this. Will dig this out.

So i'm not breaking any laws because i'm not declaring the above? Plus if the interest rate is okish - would i be better to start making overpayments as well?

Thanks Leon W

CLAPTON

it depends a bit on what you are trying to achieve; but presuming you wish to pay a little as possible but also to clear the debt off then you want to pay as little interest as possible which means the lowest interest rate possible.

so the starting point is to find out what interest rate you are paying