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Buy-to-let mortgages on own home.

F82
F82 Posts: 1 Newbie
in House buying, renting & selling
My partner and I bought our flat before the crash in 2008. Due to relocation, we are no longer living in it and are looking for a buy-to-let mortgage. Is this a legal requirement as an impartial mortgage advisor told us it wasn't? It's difficult to find any literature on this as most buy-to-lets are on a second mortgage and we don't have a second home. Any advice or suggestions welcome!!

Comments

  • Werdnal
    Werdnal Posts: 3,780 Forumite
    Part of the Furniture Combo Breaker
    Do you already have a mortgage on it? If so, you can apply for consent to let from the lender, although they have no obligation to agree.

    If you are planning to let it and want to mortgage to raise capital for another property, then you will need a BTL loan.

    I would speak to another mortgage advisor!
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    F82 wrote: »
    .....looking for a buy-to-let mortgage. Is this a legal requirement !
    Depends what you mean by 'legal requirement'. It is not a criminal offence to let a property on a rsidential mortgage.

    But it IS a breach of the terms of your residential mortgage - a civil matter which could reult in the mortgage facility being withdrawn and/or punititive damages.

    Read:

    New Landlords (information for new or prospective landlords)
  • kingstreet
    kingstreet Posts: 39,304 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You can ask your current lender for consent to let.

    If you want to raise money from the flat by remortgaging, you'd use a let to buy product. These follow the same rules as buy to let products where you will be able to borrow upto 75%, with the rental income requirement being 125% of the monthly mortgage interest at perhaps 6%pa.

    If you plan to buy a new property to live in, be careful. Many lenders top-out at 80% or 85% maximum on second property mortgages and some will deduct the cost of the current mortgage from your income, even if the property is let.
    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.
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    F82 wrote: »
    My partner and I bought our flat before the crash in 2008. Due to relocation, we are no longer living in it and are looking for a buy-to-let mortgage. Is this a legal requirement as an impartial mortgage advisor told us it wasn't? It's difficult to find any literature on this as most buy-to-lets are on a second mortgage and we don't have a second home. Any advice or suggestions welcome!!

    Ask your lender for consent to lease, don't forget to check your long lease to see if subletting is permitted or if you need the freeholder's consent too.

    I doubt you will get a BTL mortgage without significant equity.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
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