Switch mortgage to buy-to-let

j4me5

I bought a house almost 2 years ago funded by a mortgage from a reasonably well known bank (the mortgage has just over a year remaining of a fixed term). Since then my circumstances have changed and I now live in my girlfriend's house.

I planned to sell, but was approached by someone wanting to rent and for the past 7 months they have lived in my house and have been a model tenant.

I have so far not mentioned any of this to the bank because I don't meet their criteria for their buy-to-let mortgages and am worried about what might happen. I have around 15% equity in the house (they require 20%) and the rent I receive is about 122% of the mortgage interest (they require 125%)

I just wanted to ask, does anyone have experience of banks switching a mortgage to a buy-to-let when they didn't fully meet the lending criteria?

Thanks in advance.

dimbo61

You can ask for consent to let

j4me5

dimbo61 wrote: »

You can ask for consent to let

That could be a shorter term option, but was hoping to be able to switch to the longer term option of a buy-to-let.

dimbo61

You have one year left on your current deal and if you want to change to a BTL you may well need to pay ERC,s to exit your current residential mortgage.
You will have fees to get a BTL mortgage often 2%
You may need to to reduce the loan to get 75% BTL.
Remortgage fees, searches, legals etc
Consent to Let !
Phone call to lender and maybe small fee and possible increase in Interest rate.
Wait 12 months and you might have a better LTV as more of the mortgage paid off and house prices rising.
It also gives you time to build up savings to overpay mortgage.

dimbo61

You have got Landlord Insurance and Gas safety certificate

j4me5

dimbo61 wrote: »

You have got Landlord Insurance and Gas safety certificate

Yes, I've done things by the book, other than declare it to my mortgage provider (landlord insurance, gas safety, tax return, etc).

j4me5

dimbo61 wrote: »

You have one year left on your current deal and if you want to change to a BTL you may well need to pay ERC,s to exit your current residential mortgage.
You will have fees to get a BTL mortgage often 2%
You may need to to reduce the loan to get 75% BTL.
Remortgage fees, searches, legals etc
Consent to Let !
Phone call to lender and maybe small fee and possible increase in Interest rate.
Wait 12 months and you might have a better LTV as more of the mortgage paid off and house prices rising.
It also gives you time to build up savings to overpay mortgage.

I already overpay and plan to increase the overpayments. Looks like consent to let is the best short term option.

Thanks for you responses.