Rental property - maybe for personal use

nrsql

I'm staying in a hotel a couple of nights a week near work and getting a bit fed up with it. The contract was meant to be for a few months and has just been extended for another 3 months which will take it up to a year and I will probably be there for another 4 months at least.

I am looking to buy a flat near there and looking at means of finance.
I have a rental property with no mortgage which I could mortgage to part fund the new property. My other mortgages are racking the BOE rate and I don't want to interfere with them - but can release a bit of funding from my residence.

My plan is to buy a two bed flat and if I stay in it to rent out the other room, then rent out the first room when I stop work. If I don't use it myself then I would rent out the whole flat.

The question is whether I could get a (smallish) buy to let mortgage on the flat given that I may be living in it myself. I couldn't get a repayment residential mortgage (I don't think) as the repayments would be high as I'm too old and I would only be there for a short while. I might look at that if it's the only option.

Sorry for the length but what are your thoughts. Mainly about whether it is possible/legal to get a buy to let mortgage then live in the property for a shor time.

getmore4less

I think the problem with BTL as an option is AIUI most(all?) want AST in place.

Have you looked at more appropriate accommodation like a house/flat share, or just rent somewhere and get lodgers in.

If it is too far to commute will it be too far to manage as a let longer term?

The other issue may be tax your current situation should be fully deductible(accommodation and food) as would an share, buy somewhere won't they no longer be deductible.

nrsql

Thanks for the reply.
Tax isn't a problem, I'll absorbe it
Distance for managing the let isn't an issue, I rarely visit my other rental properties.
Not keen on renting somewhere myself.

The AST can't be in place until after the purchase so can't be a condition of the mortgage - but maybe they expect to see one later. Could just say I'm having problems renting.
I would have to pay council tax which would maybe be searchable but would they know it's as an empty property or not? Could say I'm staying there while making repairs if questioned.

nrsql

Talked to my broker and he suggested a secured loan on my residential property. Sounds good if it can be paid down early without penalties.

getmore4less

Will probably be cheaper than a BTL anyway and a lot more flexible.

Might be worth a look at offset if this may happen again but if you have a good rate you don't want to lose then topup.

Just make sure you can get the tax relief when let.