consent to let and remortgaging

magnolia_haze_2

Hi, we are locked into a mortgage deal till end Oct 2012, we moved from our property in Jan due to work relocation and have been renting a property to live in whilst also paying our mortgage on an interest only basis. We figured out we would rent our property out until we decide more long term decision. We have tenants keen to move in end Aug 2012. We are keen to do everything above board. Our mortgage lender will add 1% interest to our mortgage when consent to let, this is fine whilst in deal but their SVR is 5.99 add 1% to that and we pretty much double our mortgage. They only offer BTL mortgage in England and Wales and our property is in Scotland. Can we remortgage with same/different lender to get a reasonable fixed rate whilst on consent to let or do we need to get BTL mortgage? Thanks for your thoughts.

G_M

If you go to a different lender you will have to apply for a BTL mortgage since you do not intend to live there. Unlikely to be a better deal - but speak to an independant mortgage advisor.

Are you familiar with all that is involved with letting the property? Tax? insurance? gas safety? etc etc

This post is England-based and Scottish letting law is different, but it will give you an idea.

magnolia_haze_2

Thanks
Yes, we're sorted with safety certs, landlord registration and will get LL insurance and pay tax, all of which we can manage on a product rate plus 1% consent to let. Just not viable on SVR + 1%. Really don't want to sell as it is our home. We bought a wreck at height of market, spent lots renovating, if we sell we should take out about same equity we put in which in this market isn't too bad. We have LTV of 70%. Getting second thoughts re letting but don't want to disappoint prospective tenants. Have contacted financial advisor who set up present mortgage so hopefully be less confused soon.