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Which type of mortgage should I apply for?

kh888
kh888 Posts: 18 Forumite
in Mortgages & endowments
Hi everyone

I am a first time buyer currently interested in purchasing a one bedroom freehold house as a buy to let investment.
However it needs a fair bit of refurbishment and redecorating which I assume will take a number of months to complete.
I won't be able to rent out the property while the house is being done up.
I do know you need a buy to let mortgage for a rental property, but can I still get a residential mortgage until the house is finished and then ask for consent to let?

Any useful advice is much appreciated :)

Comments

  • betmunch
    betmunch Posts: 3,126 Forumite
    If your intention is to let it you need a BTL mortgage. If it needs a lot of work you may have issues from the survey.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Being a first time buyer will also be an issue for some lenders.

    What deposit have you got and what is the purchase price? What is your income? Anticipated monthly rent?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kh888
    kh888 Posts: 18 Forumite
    Being a first time buyer is a big issue unfortunately.
    I have already had a mortgage application rejected recently by Northern Rock on a property I was in the process of purchasing. They were the only lender willing to lend to me at the time. The issue that time was overhead National Grid powerlines noted down on the survey which may reduce the marketability and value of the property. How did the homeowners manage to get a mortgage for that house in the first place? Would the lenders be more lenient if I had applied for a residential mortgage?

    The property I'm interested in now is on the market for £128000 at present, and in a very desirable village 5 miles from the main town. I have a 30% deposit and would have a rental income of about £550. As I said it needs some redecorating before it's in a rentable condition. I'll be annoyed if the survey pick up issues that would prevent me from getting a buy to let mortgage. I would assume that by doing up the property, it would be more rentable and also a better investment.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    What is your income?

    You would be best speaking to a broker. More Buy to Let lenders are available through brokers
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    kh888 wrote: »
    I'll be annoyed if the survey pick up issues that would prevent me from getting a buy to let mortgage.

    You face wider issues than just the survey in terms of obtaining a BTL mortgage.

    Being an existing homeowner is a precondition of many lenders.
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