BTL Mortgage

vik1491

If I buy a house with the intention of renting it do I have to take a BTL mortgage or can I take a normal mortgage?

Thanks

ds1980

you should have a btl but you don't have to saves you putting down a lot. They are starting to twig on now but you can still get away with it.

PoorDave

BTL mortgage will most likely be assessed against the rent the property would bring in, non-BTL would potentially be assessed against you income and existing credit commitments.

HGLTsuperstar

Depends on your circumstances, if you're more likely to get a residential mortgage go for it and then officially, a month or 2 later, talk to your lender about transferring to BTL (you can risk keeping quiet, your choice). Spme lenders will keep the same rate but charge a transfer fee, others may up the rate but at least you've got in there to start with and have a bit more leverage to shop around

herbiesjp

vik1491 wrote:

If I buy a house with the intention of renting it do I have to take a BTL mortgage or can I take a normal mortgage?

Thanks

Simple answer is yes - otherwise you will be in breach of the T&Cs of your mortgage contract

Also need appropriate buildings cover, and you would need to let them know it is let out

HTH

Hurdler

On a similar theme... but slightly reversed... I'd initially wanted to do as vik1491 asked - but chatted it over with a friend the other day and she'd suggested perhaps overpaying on my current mortgage for a 2 bed flat for a year (bought over 10 years ago so mortgage payment is about 1/5th my salary) and saving for a HEFTY deposit, and then converting the flat mortgage to BTL and borrowing extra on that (currently a Flex Tracker mortgage) and using THAT + savings as a deposit on a house for me...

Actually it's probably a 2-3 year plan as I'm currently wading through my late father's probate (so potentially inheritance can add to the deposit pot) and also ... i just paid a fortune on putting in a new kitchen and bathroom so actually wanna enjoy it!!!

So which way (if any) is the right way?
Am I missing a trick?

I am bouyed with becoming debt-free from a loan today - so pressing ahead in Feb with the savings plan

Many thanks-doodles