Buy-to-let help?

Leon_W

No you're not breaking any laws !


You don't even need consent to let as you are not letting it. A member of your family lives there which is a completely different thing altogether.


Confusion reigns in this department but as far as I am aware a residential loan is fine if the property is to be lived in by yourself or a family member providing your income covers the loan amount.


A Buy to Let mortgage can be obtained if a member of your family lives in a property. This is a "regulated" BTL mortgage. The loan amount is calculated on the open market rental value.


A Buy to Let mortgage can also be obtained for renting out to people that are not family members but these are "un regulated" and again, the loan amount is calculated from market rental value.

Basically you just want the one with the lowest rate for which you meet the lenders criteria.

bernie115

Great - thanks for clarifying so clearly.

bewilderedhelpneeded

Im confused as to why you want to switch to a BTL mortgage? The interest rates are higher than a residentual mortgage and the arrangement fees are higher too!

bernie115

Because without doing any research I actually (being niave) thought that because someone else was living in the house and regardless of who it was, I thought that I would have to change the style of mortgage and therefore switch to a BTL mortgage.

Leon W has cleared that thought up for me!