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Moving from Residential mortgage to BTL mortgage,please advice.

kaz
kaz Posts: 45 Forumite
in Mortgages & endowments
Hi Everyone.
i have been having some trouble lately with relation to my mortgage.I am trying to change my mortgage from a residential mortgage( from a high street bank) to a Buy-to-let mortgage in order to rent my house out while i carry on working overseas.Can anyone advice me of any broker that contact and who will me able to helpme out.
Any help will be much appreciated.
kaz

Comments

  • silvercar
    silvercar Posts: 51,456
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Ambassador
    I would first contact your existing lender and ask if they will give you "consent to lease".
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Spot on.

    Go to your current lender and see how they will deal with your request i.e request consent to let. They may say yes on current interest rate, or they may say yes but chaneg your rate.

    Based on what they say, you would then be in a position to see how that compares to everything else on the market
    I am a Mortgage Adviser
    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.
  • kaz
    kaz Posts: 45 Forumite
    Hi Guys
    thanks for the reply.I actually have the consent to let which will be running out very soon.Because i am will to work overseas for quite a while and my intention is to let out the property for longer without having to worry to much about the consent to let.
    i approached my lender about changing the mortgage to a BTL and they said that the term of the loan will only be for 15 years which means that my monthly repayment is going to double.Of course, i am trying to keep my repayment at its minimum and to maximise my return.
    is there any chance that someone could link me to a broker who could find me a decent deal.
    regards kaz
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Do you want to keep the mortgage on a repayment mortgage basis?

    You could change to interest only as a stop gap if need be

    All depends on what your plans for the property are.
    I am a Mortgage Adviser
    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.
  • kaz
    kaz Posts: 45 Forumite
    herbiesjp wrote: »
    Do you want to keep the mortgage on a repayment mortgage basis?

    You could change to interest only as a stop gap if need be

    All depends on what your plans for the property are.

    i am keeping my repayment on interest only and the the BTL with the current lender would double the repayment because of the 15 term instead of the 25 years.

    kaz
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    On interest only the mortgage payment will stay the same over 15 years or 25 years

    The mortgage term makes a difference on capital and interest mortgages
    I am a Mortgage Adviser
    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.
  • kaz
    kaz Posts: 45 Forumite
    herbiesjp wrote: »
    On interest only the mortgage payment will stay the same over 15 years or 25 years

    The mortgage term makes a difference on capital and interest mortgages

    Ahh ok.Bizarre coz i am already paying just interest on my current mortgage and the only reason i can work out the reason for the double in the rent repayment is the interest rate..Am i right?in that case i am definitely not saving any money...
    can you advice of any broker?
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