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Buying to let or live

Hi. I currently have a two-bed house that I have paid the mortgage on. Although I do own a 1/3 stake as a loan which I now only pay back if I move house.

My plan was to use £60k savings that I have to perhaps either pay off this 1/3 loan or use as a deposit to buy a small flat to live in or rent out.

My question though is this. If I want to buy a small place to live in for a small while, say three or four months, before letting it out, would I need to request a Buy To Let mortgage. Or can I get a mortgage on the basis that I may want to live there myself for up to a half a year or even a year. What onus is on me to tell the lender when it comes to me wanting to rent somewhere out if I have a mortgage with them. Is it a case of as long as they get the mortgage mayments they will be happy.?

Thanks

Comments

  • marliepanda
    marliepanda Posts: 7,186 Forumite
    If you are going to live there, you get a residential mortgage.

    If you want to let it after that, you can convert the mortgage or get consent to let (but thats harder to get with only living there a few months)

    If you are not going to ever live there, you cant get a residential mortgage.

    What interest do the bank have? Well they kinda own your house when you have a mortgage. So their terms are their terms, you stick to them. Anything else is mortgage fraud.
  • PlymouthMaid
    PlymouthMaid Posts: 1,550 Forumite
    Seventh Anniversary Combo Breaker
    If you go down the route of not telling the mortgage company, you will find that you are not covered by insurance should anything happen. Also wise tenants will check that their landlord has permission to let (not sure how though) as their situation is a tad precarious without it.
    "'Cause it's a bittersweet symphony, this life
    Try to make ends meet
    You're a slave to money then you die"
  • thenap80
    thenap80 Posts: 454 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    So I guess its best to ask a lender prior to getting any mortgage whether I could l could let after only a few months. Is it your opinion then that banks will not be up for this then? I just wanted to perhaps live there for a short while before letting it out.
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    thenap80 wrote: »
    So I guess its best to ask a lender prior to getting any mortgage whether I could l could let after only a few months. Is it your opinion then that banks will not be up for this then? I just wanted to perhaps live there for a short while before letting it out.

    They usually don't as a BTL is a business product, and therefore asks for more stringent conditions, such as 25% deposit etc.

    Living there for a short amount of time suggests you are doing it to get around these conditions. (even if you are not)
  • junglejame911
    junglejame911 Posts: 143 Forumite
    EDIT - sorry posted in totally the wrong place!
This discussion has been closed.
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