Re-mortgage?

71320

Hi,

Firstly let me apologise for my severe lack of knowledge on this, but I guess that's why I'm here.

So I have a mortgage with Halifax, 5 year fixed term which is due to come to an end next Feb (I realise I might be a bit premature with this but I don't want to leave things until last minute). I received consent to lease from Halifax and I'm currently letting out my property.

When the fixed term comes to end I believe I have a few options available but I don't exactly know which road to go down. If I stay with Halifax it would probably be the easiest way but maybe not cheapest, but if I move to another lender, am I right in saying that I would be remortgaging?

I guess I don't even know which questions to ask at this point, but what would be your suggestions as to what I do next to have a decent mortgage at a decent price that allows me to continue renting my property out?

Thanks in advance, and again, apologies for my lack of knowledge!

Thrugelmir

If you remortgage then it's highly likely that the new lender won't grant CTL immediately. Normal rules require 6 months to have elapsed before an application is considered.

Halifax may switch you to BTL terms when the fixed term ends. So although there's some months to go. May be worth ringing them to see what there current policy is. So you can start planning your options.

kingstreet

As soon as the fix ends, Halifax will want you to switch to a CTL product, three years fixed at 5.99% with £999 fee, or thereabouts.

Your options for a remortgage will all be to formal BTL products, so you will need to match the lenders loan to value (typically max 75%) and rental income (rent = 125% of monthly mortgage interest @ 6%) requirements to be able to take that route.

You need to consider if the remortgage is an option, then start looking for potential lenders/products.