consent to let....a good idea???

adrian_bond

Hi all! I will try to keep this brief!

Basically I have a 1 bed flat, currently worth £107000, mortgaged on a residential mortgage (approx £78000) giving me 25% ish equity yay!
I currently pay £300 p/m in interest @3% and overpay a further £320 on top making a total on £620 p/m repayment type mortgage (35 years remaining).

I’m now looking to move in with my GF (she has her own house) and rent my place out (it should generate approx £500 - £525 rent p/m I hope)

I am looking to save up as much as possible and buy another house as a buy to let for approx £110000-£125000
For rental providing the rental figures stack up etc. I currently have £10000 in savings (another £5000 as my emergency backup not to be touched), so will need approx £32000 as a deposit for BTL!!!

The conundrum I have is; I can’t get a standard Buy to let mortgage on my existing flat (as I would have to sell it to myself and that’s impossible), there are only a few “let to buy” products available which are very similar to BTL mortgages as far as I can see. (hefty setup fees of approx £1800)
However, on approaching my lender, they have agreed to “consent to let” at a cost of £125 setup fee and an extra 1% on my interest up to my collar (which incidentally is 3% so won’t have any effect at all to what I am currently paying).

What I don’t know is;

• Can I release any of my equity prior to setting the mortgage as a consent to let and how much extra would this cost me in interest payments?
• Can I set this mortgage to interest only (standard practice for investing) or does it have to remain as a repayment type?
• Is it possible to buy another place as a BTL when my existing residential property is listed as consent to let?
• Once I have the place rented and have got some experience for renting, am I eligible for full market deals or do I still qualify as a first time landlord?
• Can I remortgage my existing flat as a BTL in the future when me and the GF buy a residential place together to live?
• Can anyone spot anything I’m not considering?

Any advice is gratefully recieved

00ec25

have you spoken to a whole of market broker?

really don't understand why you think a BTL mortgage requiring you to buy it from yourself is a hurdle?
Of course it isn't, just the same as any other type of re-mortgage involves you "buying" it from yourself, ie. you repay your existing lender and take out a new (BTL or residential depending on the circs) mortgage with a new (or current at different rate) lender

- you could try to borrow more on a CTL, depends on your lender
- you could ask to switch to IO, depends on your lender
- you could buy another BTL, depends on whatever restrictions your CTL lender has imposed as to whether they link the CTL status to anything else you do outside of the CTL property
- ask a broker now about "full market deals"
- you can try to remortgage to a BTL whenever you want, you are however correct in that some BTL lenders will require you to have a second property on a residential mortgage before they will allow you to have a BTL, talk to a whole of market broker