Renting out do i need to change mortgage?

jamesd

Melissa177, not solely administrative. A BTL deal has the extra deposit requirement and also typically requires that the rent exceeds the mortgage payments by 25% or so. In your case you may not meet them because of a lower deposit and because of insufficient rent cover (you're planning to charge 100%, not 125%). That causes them to have to take significantly more risk than they would in a normal BTL and they may not even want the business at all under those conditions.

I don't know of a BTL lender who would accept a deal at 95-100% mortgage and only 100% coverage of the mortgage with rent, but I'm not a broker and maybe there is one who would. If accepted it sounds like a deal that would have a premium above the usual 1% or so, to cover the higher risk of default (not enough rent to cover costs) and higher risk of inability of the security to cover the loan on sale after default.