Fixed Rate Expired but want to change to BTL in 12-18 months, what to do?

19lottie82

kingstreet wrote: »

That's what you were supposed to be asking your lender;-

1. What is CTL policy re rates/fees etc

2. Can I take residential customer retention product now and ask for CTL before it expires

3. If I do 2. what happens to rate?

Got you...thanks!

Now I just need to muster up the mental energy to sit on hold to RBS for about 20 minutes, to arrange an appointment with an advisor at my local branch for about 3-4 weeks in the future, going by past experience.

kingstreet

I'm surprised it wasn't discussed at the same time as the BTL discussion.

19lottie82

kingstreet wrote: »

I'm surprised it wasn't discussed at the same time as the BTL discussion.

No, they never mentioned it, but at least I know now to bring it up, thanks again KS.

nubbins

Hi Charlotte,

I have done something similar recently. I have a house valued at 350k and had quite a bit of equity in it, it was an interest only which expired 6 months ago so i was paying a higher rate. I remortgaged that on a residential repayment with no redemption penalty, so I could change whenever I want to. The mortgage came with free legals and free valuation so I did not have to fork out for that bit. I took out a bit extra on the residential which I have put together with a deposit I saved to buy another property on a BTL. My only bits of advice is be careful on the BTL 125% rule, I thought they calculated that on the current rates or near to it, they don't! Natwest for example use 7% for their calculations so you need a much higher rental income to cover their requirements, other lenders do use lowe rates The other thing that someone touched on is CGT, if you make a massive profit on your flat when you eventually sell you might have to give the goverment a chunk of those profits.

Good luck