Landlord mortgage information needed

emma1983_2

Hello

I've just tried googling about landlord mortgages and I can't find anything useful so if anyone could help it would be greatly appreciated.

Basically, I've been living in my flat for about 6 years and I want to sell but with the way the market is its not going to be an option yet so I'm thinking of renting my property to others. In order to do this, do I need to change my mortgage to a landlords mortgage and what is the difference between the two types of mortgages?

Fuzzyness

you'll either need to obtain consent to let from your current lender or remortgage to a buy to let mortgage product. what sort of deal are you at the moment? have a search on here for consent to let. some lenders happier than others to do it. I've had consent to let for nearly four years now.

Mrs_Z

First, enquire if your current lender would give you a consent to let. This is likely to far cheaper than remortgaging to a Buy to Let mortgage.

BTL mortgages have often high arrangement fees and the interest rates are less competitive compared to the residential mortgages.

Aside from the financial side, does your lease allow sub-letting? Equally, I hope that you have familiariesed yourself with all the legal requirements and responsibilities that come with being a landlady...

Leeaquila

Please also remember that you need to declare any income you receive from your property to the taxman.

You may be able to gain tax relief on the interest part of the mortgage,however that is more a tax issue.

It would depend who you are with as to if they will give consent to let.

There are ever increasing BTL lenders coming back into the market, so the deals are becoming more competitve, as long as the investment makes sense from a lenders point of view.

You also should consider various insurances, especially as you are not an experienced landlady. These can help protect rent payments to ensure you are not ever going to struggle.

Hope this helps!

If you want to have a more formal chat, PM me and id be happy to speak to you.

Thanks
Lee

leveller2911

Leeaquila wrote: »

If you want to have a more formal chat, PM me and id be happy to speak to you.

Thanks
Lee

Reported as Spam, every single thread you have posted on you ask the OP to send you PM,s ...........

Your clearly touting for business.... All the decent IFA,s and MA,s on here don't need to tout for work on here...They just give free,impartial advice and above board ..

Thrugelmir

leveller2911 wrote: »

Reported as Spam, every single thread you have posted on you ask the OP to send you PM,s ...........

Your clearly touting for business.... All the decent IFA,s and MA,s on here don't need to tout for work on here...They just give free,impartial advice and above board ..

I have spammed posts as well.

emma1983_2

Thanks for the advice. I'm currently on an interest only variable mortgage and have recently been enquiring about a fixed rate interest only mortgage but I don't want to tie myself into a new mortgage deal until I know what I'm doing with the property. As far as I know my lease allows me to sub let (all the other flats in the building are sub letted) but its worth reading through the paperwork. I've been offered a good deal from a managing agent to take care of things on my behalf; I'm not very clued up on being a landlady and I hoping to move out of the area so a managing agent is necessary. I am considering landlords insurance - is this a legal requirement?

I don't suppose you know roughly what percentage of my rental income the taxman would take?

emma1983_2

Thanks for the advice. I'm currently on an interest only variable mortgage and have recently been enquiring about a fixed rate interest only mortgage but I don't want to tie myself into a new mortgage deal until I know what I'm doing with the property. As far as I know my lease allows me to sub let (all the other flats in the building are sub letted) but its worth reading through the paperwork. I've been offered a good deal from a managing agent to take care of things on my behalf; I'm not very clued up on being a landlady and I hoping to move out of the area so a managing agent is necessary. I am considering landlords insurance - is this a legal requirement?

I don't suppose you know roughly what percentage of my rental income the taxman would take?

Thrugelmir

emma1983 wrote: »

I don't suppose you know roughly what percentage of my rental income the taxman would take?

If you don't pay tax then you are not making a profit.

Interest is a tax deductible expense for any business including the self employed. So don't make decisions on this aspect alone.