Buying new home, keeping second home

kublikhan

We are considering renting out our current home and purchasing a new home. Thus our current home would change from primary residence to investment. The new property/mortgage I would get would be my new primary residence. Am I supposed to notify my current mortgage company that the property will now be an investment property? Will they raise my rate if I do this?

What about the new mortgage, if it is going to be my primary residence do I specify it as a primary-home loan or a second home loan?

joeblack066

You will need to change your original mortgage to Buy To Let (get a quote on this from your Lender before you make any decisions, then you will need the evidence of the rental income on this to then facilitate a second property on a normal mortgage. Speak to a no fee broker for a no obligation quote.

Tiger_greeneyes

I've done this - before you remortgage on a BTL mortgage (with all the expense involved) contact your current mortgage lender - they may well allow you to rent out the property, even if they increase your rate a bit. BTL mortgages are usually at a higher rate than standard mortgages so there may be very little in it, financially speaking.

Also, if you stay with your existing lender, and you need to move back in, you just let them know and they'll readjust your rate again. If you've got a BTL mortgage, there's no way you can move back there until you remortgage again.

Mortgage Express are strong BTL mortgage lenders if you want to get a quote