Convert to buy to let with co op

mazda_man

Hi, does anyone know if the co op let you convert a residential mortgage to a buy to let. My ltv is approx 80%. Alternatively if the co op don't do this would it be possible to re mortgage with another lender and convey to buy to let ? Any advice would be gratefully received !

_Andy_

Have you rung them and asked?

holly_hobby

Well without getting into "have you thorougly considered the role of a landlord" discussion ...

If Co Op refuse your consent to let request, you could of course remortgage this to a BTL lender (subject to rental income being 125% of mge interest @ 6% or thereabouts) and a generally a min income of 25k (although there are a couple of lenders without this requirement).

Additionally as a first time landlord you will be capped at a max 75% ltv, which may be an issue (or not) if the property values up to this or if you have additional capital to redeem the Co Op mge, reducing your BTL requirements down to 75%.

You will also have conveyencing and mge exit and admin fees if you do effect a BTL remortgage. To which I would engage a mge broker re any BTL requirements, so you have access to the broadest choice of lenders whom accept both direct and intermediary business.
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However, frst things first, phone your lender, hopefully CTL will be agreed (which will typically be for a period upto 3), if Co Op refuse then at least you have the basics of what to do next, but pop back if you need more guidance.

Hope this helps

Holly

ACG

I used to work for co-op mortgages. I think their criteria is that is has to be under 75% LTV in order for them to give consent.

Your rate would also be increased and you would have to pay an admin fee (which off memory was about £100-150).

HARSA

ACG wrote: »

I used to work for co-op mortgages. I think their criteria is that is has to be under 75% LTV in order for them to give consent.

Your rate would also be increased and you would have to pay an admin fee (which off memory was about £100-150).

They will also add 1% to your existing rate.

ACG

I wasnt sure if it was 0.75% or 1% - thanks for clearing it up.