Regulated Buy To Let Help

MummyWoolf

Hi
My parents are gifiting my brother and I the deposit to buy a BTL and we intend putting a tenant in there for a year or so. My parents cannot rent it from us at this time as they have gifted the deposit. My parents would like to rent it from us in the future. As this mortgage is a non-regulated, I understand that we would need to change to a regulated in order for them to occupy it. My question is, how is the mortgage lender going to view the fact that they gifted the deposit when we come to refinance a year or two down the line, will they be less concerned?
Thanks

Thrugelmir

Lenders may be suspicious at the outset if the deposit is gifted by related parties.

kingstreet

You don't have to change. It is the purpose to which you intend to put the property at the point of purchase which determines if you need a regulated product or not.

For example, you can take out a BTL product as long as it is your intention to let the property. If you decide to move in to the property in twelve months, you do not have to explain that to anyone, nor do you have to change to a residential product.

Likewise, if you are letting to strangers at the outset, but later decide to let to family, you do not have to change from unregulated BTL to regulated BTL.

It is only your intention at the time of application which matters.

MummyWoolf

Thank you so much for relies. That's really helpful. i was worried that, when I came to remortgage they wouldn't like the fact that parent's had gifted deposit and were living there.