Do I need a Buy To Let Mortgage?

Abattoir

Hi,
Can anyone tell me if I will be charged an early repayment fee for transferring my current mortgage to a buy-to-let?
Thanks

kingstreet

Please tell us what you wish to do.

You can obtain consent to let from your current lender under some circumstances.

Changing to a buy to let mortgage means moving from one lender to another, which would involve early repayment penalties.

Telling us your plans would help identify the route you should consider most closely...

Abattoir

To be honest, I have been renting out my terraced house for 3 years, but didnt tell my mortgage lender because I didnt know I had to. I was wondering what my options are?
Cheers

kingstreet

Ask your current lender for consent to let, or move to a buy to let product with a new lender.

AFAIK there is no transfer process offered anywhere. A lender does not switch you to a BTL product. You either apply for CTL and have it granted, subject to possible conditions/cost or you remortgage to a lender offering BTL products, also subject to conditions/costs.

CTL is often the most cost effective and painless solution.

Abattoir

Thankyou very much for the advice Kingstreet. I'm feeling a bit overwhelmed with the whole process, but I will discuss a CTL with them tomorrow. I shall let you know the result.
Cheers

Simon_gloster

Unauthorised tenancy is bad, but i'm not here to lecture you......there are some horror stories on here of folk who have been found out.

CTL, as kingstreet said is painless if granted. If you are on a deal with no early repayment charges and quite a good rate you will have to come off this. If the rate offered is a lot higher than what your paying and decide not to proceed, its likely they will monitor you.

Should you be tied in ie on a fixes rate, usually they let you see this out d transfer to CTL at a later date.

This all depends on who the lender is, so as you say, call them tomorrow and let us know.

Abattoir

Hi Simon, I'm on a 5 year fixed rate with Halifax which ends next year, and yes there is a repayment penalty but I'm not sure how much it is. I'm told my current interest rate is really high (approx 6%) so if I am granted a CTL, would it be lower?

kingstreet

With Halifax, you'll see out the last year of your fix and be granted CTL at no additional cost now. However, when it ends you will be practically forced to accept a three year fix at around 6% and a £1,000 fee for it to be renewed.

At that time you can of course consider remortgaging if you can find a better deal on a BTL product.