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Switch to Buy-to-Let Mortgage?
firsttimebuyer2012
Posts: 5 Forumite
Hello,
My partner and I purchased a property in December 2012 on a 2 year fix deal at LTV ratio of 89% (with Nationwide)
We have since renovated the property (it was pretty much uninhabitable) and the mortgage balance is now around 65% of the property's value.
In around 18 months' time we would like to go travelling for a year and rent out the property while we are away. It occurred to me that if we could switch to an interest-only buy to let mortgage then we may even have a monthly surplus after paying the mortgage.
Is this possible? Is it very costly in terms of fees etc.? And is it then easy enough to switch again when we return and wish to move back into the property?
Thanks in advance.
My partner and I purchased a property in December 2012 on a 2 year fix deal at LTV ratio of 89% (with Nationwide)
We have since renovated the property (it was pretty much uninhabitable) and the mortgage balance is now around 65% of the property's value.
In around 18 months' time we would like to go travelling for a year and rent out the property while we are away. It occurred to me that if we could switch to an interest-only buy to let mortgage then we may even have a monthly surplus after paying the mortgage.
Is this possible? Is it very costly in terms of fees etc.? And is it then easy enough to switch again when we return and wish to move back into the property?
Thanks in advance.
0
Comments
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Nationwide should give you consent to do this but I would not expect to them to let you switch to interest only.
After 6 months letting they tend to load the interest rate by around 1.5% so bear this in mind.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Yes, it's possible.
Fees would depend on choice of lender and rate.
Remortgaging on your return would depend on your financial status, so possible, yes. Subject to the usual requirements, which for some lenders will be how long you've been back in the UK.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.0 -
Make sure you are on the electoral register before you leave and organise at least one bank/credit card statement to be sent to same address. Parents' residence will often suffice.0
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