Buy to let mortgage

Peso_the_pig

Hello
I'm a new member & this is my 1st post! I had a property that I was letting out to a tennant, and this was on a buy to let mortgage which was fixed for 2 years (fixed period expires in Feb 2013) with exit fees if mortgage redeemed within the 2 years. This was fine but my situation suddenly changed when my partner and I split up. I needed a smaller house in the same town, to move in to with my 5 year old daughter, for her stability and schooling etc. I advised the BTL mortgage company of the sitaution, paid off 18k as a gesture of good will (which was within the overpayment allowance), and intended to carry on paying the monthly mortgage and then remortgage in Feb 13. They have now written advising I am breaking the morgage contract, and I have to remortgage which will mean redeeming my BTL mortage and therefore incurring the 6k exit fee. I am now a sinhle mum on a part time salary and although I can pay the monthly mortgage it will be a real struggle to fork out 6k exit fees. Any ideas/suggestions?

Wh05apk

So have you moved into the BTL property?

Peso_the_pig

Yes all moved in / daughter happy and settled!

Thrugelmir

Peso_the_pig wrote: »

They have now written advising I am breaking the morgage contract, and I have to remortgage which will mean redeeming my BTL mortage and therefore incurring the 6k exit fee.

How long they given you?

Can you obtain another mortgage?

Wh05apk

Peso_the_pig wrote: »

Yes all moved in / daughter happy and settled!

That's the issue, if it's a btl mortgage, you are not allowed to live in the property, for the sake of £6,000 over 6 months, could you not continue to rent the property, and rent somewhere yourself, before remortgaging to a residential in February?

Peso_the_pig

agghhh I keep losing my replies and getting lost within this forum...If I was on my own it would be a no brainer, but my 5 year old daughter has lost her Dad, and her old home and has already been through a move and all that upheaval. I don't want to put her through all that again plus I don't think I have the energy to do it all again! I would be able to get another mortgage (I turned down a no fee lifetime tracker mortgage at 1.99% above base because I didn't want to waste 6k on exit fees. This rate is still being offered but it now comes with fees!). I don't suppose getting a lodger would fulfill the conditions of the BtL mortgage??!!

GMS

Take a residential mortgage and buy elsewhere, rent out the current property as per the mortgage terms and sell when Early Repayment period ends.

Other than than that rent for 6 months and remortgage on to the stated deal and move in.

Getting a lodger wouldn't help unfortunately.

Peso_the_pig

When i spoke with the mortgage provider last week they advised that I would have to remortgage, but didn't at that time give a deadline....sorry if these threads are a bit disjointed!

GMS

Have you asked your current lender if they would convert to a residential mortgage? Or see if they will give you 6 months grace. If they will then arrange a remortgage which will complete on the day the Early Repayment period expires.

You could get a mortgage offer, get the solicitor to do all the necessary work and hold off on completion.

Dave_Ham

You sound genuine, speak to your lender and explain your circumstances are genuine and not trying to make money or exploit the situation.

Speak to the lender and I am sure you can get a mortgage offer in place and hang out this for 6-9 months.

Good luck