Can I switch to a buy to let??

qwertyqwerty

Hi There

I am currently on a consent to let deal with the Halifax, with a tracker deal which is currently set at 6.1%. I have a mortgage of around £104,000 and I believe the house valuation to be around 120-125k. Rental income is £550, and mortgage payments of £520 interest only. Would it be possible for me to switch to a BTL mortgage, I have no money I can put down as a deposit?. if it is possible would it be beneficial for me to switch? Thanks

Jimbo1976

I don't think you have enough equity to remortgage. Most buy to let rates go to 75% loan to value (ie the size of the mortgage divided by the value of the property). There are a few at 80% and even fewer at 85% (where they stop).

You may also struggle on the rental coverage (a lender normally requires the rent to be at least 125% of the mortgage payment (or a higher rate)

Speak to a mortgage broker. The vast majority of lenders which offer buy to let mortgages don't offer them directly to the public. They will be able to see if remortgaging is possible and if it will save you any money

stephenni1971

On those figures you will not get a BTL.

kingstreet

The required rent for £104,000 mortgage will be more like £600 - £650 and there's insufficient equity in the property as has already been said.

Foxy-Stoat_3

Can you switch to a better dealer with Halifax? As your figures make it uneconomical to continue really as the Mortgage is too expensive.

qwertyqwerty

Hi there, not sure how i can get a better deal at Halifax, the consent to let rates seem to be set in stone, and the only way seems to be up from here. As you have said it is currently unaffordable for me.

Foxy-Stoat_3

I didn't think Halifax had a CTL rate. My residential mortgage rate is 2.49% and have CTL without any rate increases.

How long have you had CTL for?

Simon11

It seems like your getting a real bad deal there!

I have a BTL on a censent to let which is worth £125k. The interest rate is 2.8% and I'm getting £850 per month.

qwertyqwerty

It would appear if I was still on a residential deal, then I could switch to a CTL and remain on the same rate for the remainder of the deal, however i was on the SVR rate and this was the only way they would give me CTL, if I moved onto this deal.

Foxy-Stoat_3

qwertyqwerty wrote: »

It would appear if I was still on a residential deal, then I could switch to a CTL and remain on the same rate for the remainder of the deal, however i was on the SVR rate and this was the only way they would give me CTL, if I moved onto this deal.

Whats your LTV %?

What are you on, SVR or Tracker?

The SVR last year was around 3.99% from memory....is your tracker 6% over BoE Base Rate, if so who sales person sold you that great deal?