Changing a mortgage to but to let.......?

berniebeyer

HELLO....

We are after some advice about buy to let.....

So, we currently have a mortgage with Skipton, we've only had it since Dec 14, it's a standard repayment mortgage.

We are now contemplating renting out our flat and was wondering about what we can and can't do.

Do we need to change our mortgage?, if we do, are Skiptons likely to allow us to change it after such a short time? I know Skiptons offer a 'porting' service. Can we port to a buy to let? (our early repayment charge is £6k)

Thanks

Bernie

Cornucopia

First off, have a look at the ERC conditions of your existing mortgage to see if they give any clue. i.e. how is the "porting" exception worded?

Next have a look at Skipton's product set and see whether anything would appeal for BTL. I would imagine that they may be swayed if the new mortgage comes with a large application fee.

Then you just have to ask - either to move to BTL or for consent to let using your existing mortgage (probably with additional fees added and/or a slightly higher rate). They can only say no... or try later... or yes.

markfj

We have a mortgage with HSBC (residential) we asked permission for letting out and it was granted, within the first year. Can only ask

berniebeyer

Thanks

I'll be firing a call in on Monday.

I've had a look through the mortgage they send you in the post. I can only find info on porting if I want to buy a new place.

Nothing about porting to buy to let, OR about not being able to let it out.

Can a building society prevent you from renting your flat through the terms of the mortgage.....?

Pixie5740

Consent to let is not guaranteed. If you let your property out without consent from the mortgage lender you will be in breech of the terms of your mortgage.

Cornucopia

berniebeyer wrote: »

Can a building society prevent you from renting your flat through the terms of the mortgage.....?

Prevent? Not as such. It's more a question of what the consequences would be.

somethingcorporate

Porting refers to moving it to a new property. You are asking for consent to let, there may (or may not) be reference to this on your T&Cs or even on the website.

We did this with BoI 5 years ago, never had a problem and they kept renewing even though they said it was only for 2 years.

You may get a rate hike or an annual fee to do it.