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Help please!

I've started to rent my flat out to tenants, as moved in with my girlfriend. My mortgage company Kensington have now been in touch to say they know I'm doing so & need to apply for a buy to let mortgage with them.

If accepted then my rate which is currently on a variable rate & not fixed will increase by 1%, which I can afford & understand, but they also want £125 every 6 months also admin fee, which I think is a real liberty.

As I'm not currently tied into a fixed mortgage rate with them, can I move mortgage providers to a buy to let instead of staying with Kensington & if so is this an easy process?

Any help or advice with this would be greatly appreciated.

Can I switch mortgage providers? 1 vote

Yes
100% 1 vote
No
0% 0 votes

Comments

  • ACG
    ACG Posts: 24,881 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Yes you can, and the process should be easy enough although it will depend on the lender and how much rent you are receiving compared to what the payments to the lender will be (most will want the rent to be 125% of the repayment... although you can put it on interest only - so it should be ok).

    Some lenders will also insist on you being a homeowner (eg another property on top of the BTL) but some wont, so its worth checking before making an application. With BTLs its usually better to speak to a broker as not all lenders offer deals direct, infact only a relatively small percentage do.
    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.
  • Thank you for coming back to me so quickly. My rent is £725 per month, my mortgage is currently £550 though this will increase by 1% if accepted on buy to let. Think my current rate is 4.5%

    Any brokers you recommend?
  • What is your current loan to value and mortgage amount ? (I suspect the Kensington offer is going to be your best deal)
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • ACG
    ACG Posts: 24,881 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What is your current loan to value and mortgage amount ? (I suspect the Kensington offer is going to be your best deal)
    Not necessarily, at the minute you can get BTLs at 2.99% so it could be beneficial to switch.

    Were not allowed to recommend brokers on here (you never know if we are working for them or on a kick back). Most brokers should be able to find you a BTL that will fit your circumstances though.

    Youcould try google or friends/family?
    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.
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