Remortaging during consent to lease

ekumi00

Bit of background. Me and my girlfriend purchased a small house 2 years ago in Norfolk. I was living in London at the time but was looking for work in Norfolk. I wasn't able to find work and my girlfriend has ended up moving to London recently. We contacted Halifax who gave use Consent to Lease for 5 years (that's when our fixed rate expires). Someone is currently renting the house now but we are covering the mortgage by £14 each month. We are currently paying 4.99% on that mortgage.

My question is, can we remortgage as the rates are good at the moment whilst we are in the middle of a consent to lease? And if we can, and we decide to move to another lender, what are the chances of them allowing us to continue our consent to lease deal? or will we have to take out a buy to let mortgage? Hope this is clear.

Thanks:D

Thrugelmir

You need to move the mortgage onto a BTL. No lender would give a CTL on a remortgage.

Have you checked to see what the ERC (exit fee) would be on your existing mortgage product?

Only the interest element of the mortgage repayment is allowable against tax. So be careful that you are not actually subsidising the property by even more.

dimbo61

Did you put down a good deposit ? 25% ?
You might with the help of a broker be able to remortgage from your residential mortgage ( repayment ) with consent to let to BTL Interest only IF you have enough equity in the property and the figures stack up !
IE rent is 125/130% of the mortgage at 6/7%