Going from BTL mortgage to repayment...

SCMD

Hi

With the help of my parents I bought a house a couple of years ago and got a buy to let mortgage in the joint name of my father and I. The initial term of the mortgage which was interest only has expired and I would like to remortgage and need some help.

I got married last year and my wife and I are living with my parents while the house I bought has been on rent. At the moment I have tenants in the house and my plan is to move into the house within 10 - 18 months with my wife.

My question is this, is it possible to remortgage onto a fixed rate repayment mortgage while the house is on rent? I would like to do this to take advatage of the current low rates that are on offer.

Any further guidance would be really appreciated.

I am happy to answer any further questions if that helps.

Thanks

kingstreet

You can remortgage onto a fixed rate repayment buy to let mortgage if it will be let for a further period. You could even ask your existing lender for a new product for a couple of years. Changing to repayment will mean some of the mortgage payment, the capital element, won't be offset against the rental income for tax purposes. Only the mortgage interest is an allowable expense.

If you're thinking you can remortgage onto a much more attractive residential product, the answer is no, you can't.