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Renting with a Interest Only Mortgage

Hi,

My girlfriends fixed rate deal is coming to an end in September. She has approx £104,000 mortgage and the property is worth £152,000. Basically, she wants to move in with me and rent out the property but will struggle to cover the rent if she switches to a fixed or variable deal. Would it be an option to switch to a Interest only mortgage and still rent it out or does she have to get a buy to let?

Cheers

Comments

  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    She needs permission from her lender regardless of the mortgage product.

    If she cannot cover the rent it is almost certain that she would be better of selling. Might be a good idea to have a joint mortgage on your current property and paying ity off quicker with two incomes. Only you know how strong your relationship is.

    :)

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
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