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BTL or CTL?
koko2013
Posts: 1 Newbie
Hi All,
My partner took out a mortgage as first time buyers 8 years ago with poxy 65K. Couple years later he remortgaged it to renovate the house: new heating, windows, roof. After remortgaging he owned to the bank around £95K. At the moment he owns £86K but his house is worth less. I think its about 70K.
He and I are going to be relocated with our jobs and we don’t know what to do with the house. My partner doesn’t want to sell it as his family lives nearby and we might come back after a few years. We don’t know.
His current mortgage rate is £350 per month; if he was renting it out he could get £400-£400.
My worry is that he might not be qualified for BTM as he doesn’t have 20% deposit money. What conditions are for consent to let?
Could he get it?
And if yes could I and him buy a house together in a place we are going to leave?
Please help.
My partner took out a mortgage as first time buyers 8 years ago with poxy 65K. Couple years later he remortgaged it to renovate the house: new heating, windows, roof. After remortgaging he owned to the bank around £95K. At the moment he owns £86K but his house is worth less. I think its about 70K.
He and I are going to be relocated with our jobs and we don’t know what to do with the house. My partner doesn’t want to sell it as his family lives nearby and we might come back after a few years. We don’t know.
His current mortgage rate is £350 per month; if he was renting it out he could get £400-£400.
My worry is that he might not be qualified for BTM as he doesn’t have 20% deposit money. What conditions are for consent to let?
Could he get it?
And if yes could I and him buy a house together in a place we are going to leave?
Please help.
0
Comments
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£400 pm x 10 months (voids!) = £4000 per annum. Less tax. Less agents 12%. Less repairs/gas cert etc. Less...
Vs 350 x 12 = £4200 pa mortgage. Plus possible CTL fees/interest rate rise
So the first thing to accept is this will cost you money each year. Do a proper budget to find out how much.
CTL is possible depending on the lender, and will be cheaper than switching to a BTL, but the lender might do the same sums I've just done....
and CTL will be limited to one year, maybe 3 max. But first steo is an informal enquiry to the lender.
Read here re letting...0 -
Negative equity means no BTL remortgage option.
All you can do is request consent to let from the current lender. Criteria varies widely, so no point speculating on what might happen. He needs to contact them.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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