Help required, got 2 mortgages and letting a property

Thompo17

Bought house number 1 over 4 years ago and got my first ever mortgage with Nationwide (3 year tracker). Then moved away due to work and rented house number 1 out. I notified Nationwide to gain consent to let the property and got this for 3 years with no change to my mortgage. This year I bought house number 2 and got a 2nd mortgage for the house. (I want to sell house number 1 as it is a financial burden, but I would be at an even greater loss to sell currently so need to wait another few years for house prices to pick up)

Nationwide were the only lender that I was able to get to give me a 2nd mortgage.

Now that my 3 year letting period with Nationwide (regarding mortgagae number 1) has expired, they are due to apply an additional 1.5% letting interest which I simply can't afford.

I have limited knowledge with regard to mortgages so any advice would be most welcome.

Can I simply move mortgage number 1 to a different a company and get a 3 year letting period with another mortgage company? (tracker period has expired so not bound as far as /i
I know)

Will this affect mortgage number 2 (not tied with a fixed period of xx amount of years) in anyway? Or would I be best moving both mortgages onto another (different company than Nationwide?)

Thrugelmir

What LTV do you have on property 1? BTL mortgages require 20% - 25% equity. Given you let the property, you will struggle to obtain a residential mortgage rate.

Thompo17

Thrugelmir wrote: »

What LTV do you have on property 1? BTL mortgages require 20% - 25% equity. Given you let the property, you will struggle to obtain a residential mortgage rate.

With current house prices probaly 80%

GMS

What rate will you revert to with Nationwide?

A new mortgage would need to be a Buy to Let one which will more than likely carry arrangement fees and valuation fees. At 80% the rate is unlikely to be any lower than you will go to with Nationwide.

If the house is a burden then look at selling it for what the mortgage stands at. Looks like a loss on paper but if the mortgage cannot be maintained it is likely to cause you issues further down the line.

Thompo17

GMS wrote: »

What rate will you revert to with Nationwide?

A new mortgage would need to be a Buy to Let one which will more than likely carry arrangement fees and valuation fees. At 80% the rate is unlikely to be any lower than you will go to with Nationwide.

If the house is a burden then look at selling it for what the mortgage stands at. Looks like a loss on paper but if the mortgage cannot be maintained it is likely to cause you issues further down the line.

Current is 2.5% will jump to 4% which is about £78 a month difference

GMS

Thompo17 wrote: »

Current is 2.5% will jump to 4% which is about £78 a month difference

You wont get a rate to beat that so decisions need to be made.

Thrugelmir

Thompo17 wrote: »

With current house prices probaly 80%

If letting the property is unprofitable then better to cut your losses.