Mortgage Question

LauraWxx

Hi All,

I currently own and live in a mortgaged flat.

BF currently owns a house (mortgaged) with his sister. He is not living there but is continuing to pay towards the mortgage (his half). No tenants in there, just sister living there.

BF lives with me but only pays towards bills.

Our plan has always been to rent the flat after about 2 years of living there, sell his house and buy a family home. Would switch the flat mortgage to consent to let or buy to let and rent it out.

However we have stumbled upon a house that could be everything we want and more.

We are consious that we have not lived in the flat long but at the same time do not want to miss out on an opportutity for a 'perfect' house.

My question relates to the mortgages, if we bought this house (only a very big if at the moment as we have not viewed yet - just trying to get an understanding of how we would work it / if possible) what would we do with the flat in the interim period as the house would need doing up.

Say if we bought the house in March but due to all the work that is needed we couldnt move in till say August, would the flat mortgage only need to be switched to BTL / CTL then?

If that is the case - does that therefore mean it would be possible to have a residential mortgage of 2 properties in the short term?

Also bf not keen to sell his house before at least 12-18 months as his sister would be in a very difficult position. So I guess the question is the same in this case - 2 mortgages a problem?


We are not trying to not switch the mortgage to the correct product, just hoping one of you lovely people could give me some advise on what we would be able to do and what we wouldnt.

Also -

Me - £27k
BF - £30k

Flat mortgage - £70k ish
BF House mortgage £110k ish left

house looking to buy - £140k with deposit of £20k so would be looking for £120k mortgage.

Thank you in advanced!!!
xx

LauraWxx

Bump!!!!!!!

kingstreet

Sort out your consent to let first. A lender isn't going to be bothered if you live in it for a couple of extra months.

A lender looking at your proposition is going to have a few concerns;-

- your partners current mortgage is not on a let property, so they may tax him the monthly payment

- some lenders want to see an AST for the property which is let, or to be let (which is obviously difficult) before they will ignore it.

You really need to take this to a broker. Normally I'd like to make a suggestion or two before resorting to this, but there are so many variables, it probably would end up with "seek out a good independent or whole market broker" anyway.

LauraWxx

Thank you for your reply, yep I guess broker would be the way to go.

I worry that we would not be granted CTL status on the flat...I might make an appointment with Nationwide (mortgage provider) and speak to them to see if there are any minimum time frames we would need to adhere to before turning to CTL.

We discussed last night and another option would be to put the bf's house mortgage in his sisters name, he cant see any reason why this should be a problem (apart from obviously the trust issues but we are ok with this).

If we were desperate I suppose we could always convert the flat to CTL and rent out, transfer house mortgage over to bf's sister and then either move in to the house and live there whilst the work is being done or live at the bf's (and his sisters) house for a short time. Would free up a bit of money from what we spend on running the flat I suppose.

Hmmm lots of options it seems. Thank you for your advice Kingstreet

kingstreet

Yes to transfer of equity to sister - as long as the lender is prepared to take her on alone. This would depend on the usual affordability checks.

LauraWxx

She earns close to 45k so am I right in assuming this would be ok?

Mortgage = 110k ish,
House value = 130k ish

LauraWxx

Sorry for all the questions...but do you know if there is a minimum time frame you have to have a residential mortgage before converting to Consent to let?

kingstreet

LauraWxx wrote: »

She earns close to 45k so am I right in assuming this would be ok?

Mortgage = 110k ish,
House value = 130k ish

Sounds alright, on the face of it.

kingstreet

LauraWxx wrote: »

Sorry for all the questions...but do you know if there is a minimum time frame you have to have a residential mortgage before converting to Consent to let?

Varies from lender to lender.

I would say six months, if pushed for a speculative answer.

LauraWxx

Ok thank you for taking the time to reply to me