Switching to buy to let

OscarWeimie

We bought a flat in London on Scottish Widows' Professional Mortgage at the end of 2006. We want to relocate overseas in 2008 but would like to consider keeping the London property as a long term investment (on the assumption of central London property prices performing well in the long term).

By my calculations the rental wouldn't quite cover the interest-only repayments, but we would consider covering the excess each month. Am I right in assuming that this would make getting the lender's consent to renting out the property impossible?

Does anyone know if Scottish Widows lets you switch to buy to let?

Crikey, so many questions in one post. Ideas appreciated!

Somerset

Don't know about Scottish Widows but yesterday I asked exactly the same of Northern Rock. They didn't ask anything about rental income, but then I'm not changing mortgage ie not switching to a btl product, just keeping my existing residential mortgage. The only thing I apparently need to do is get their 'consent to let' which will be £100 if I'm renting for up to one year or £250 if it'll be over that. It seemed straightforward - hopefully your's will be to.

Jenni07_2

Firstly, if you are considering buy to let or going interest free, take a good look at the market and make sure you have the best product for you. If it were me, I'd get 3 opinions and then do what I was comfortable with doing.

Good luck!

Jenni

nonsensefactory

OscarWeimie wrote: »

We bought a flat in London on Scottish Widows' Professional Mortgage at the end of 2006. We want to relocate overseas in 2008 but would like to consider keeping the London property as a long term investment (on the assumption of central London property prices performing well in the long term).

By my calculations the rental wouldn't quite cover the interest-only repayments, but we would consider covering the excess each month. Am I right in assuming that this would make getting the lender's consent to renting out the property impossible?

Does anyone know if Scottish Widows lets you switch to buy to let?

Crikey, so many questions in one post. Ideas appreciated!

You concede that the income from the rental payments won't cover the IO mortgage, so doesn't that suggest that the house is already overvalued ? OK, it might go up further, but isn't there a risk that house prices might not go up any further or maybe even drop ? It sounds like you're planning to make a loss on it from what you've said ?