We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
2nd residential property / BTL
JohnWalsh
Posts: 3 Newbie
Hi,
I'm about 6 years into a mortgage for the house I currently live in - the house value is around 100K and the mortgage is 95K - depressingly the house prices in NI haven't rebounded like most of the UK.
I want to move house and recently agreed a new house. The plan is just to get a new mortgage for the new house and keep the current house to rent it out. I just got accepted for the mortgage (HSBC) for the new house but have been told it's conditional on converting the existing mortgage to a BTL.
My problem is that I'm on a long term rate of 2% on current mortgage but with so little equity in the house that I'd be paying 6-7% on a new BTL. I can't pay off any extra of the mortgage as I've only enough savings to cover the deposit of the new house.
I never knew having 2 residential mortgages was such a big problem and now the delay of trying to sort all this out might mean I lose out on the house that I've agreed.
Do all mortgage providers have the same restriction on 2 residential mortgages?
I've heard of something called consent to let but my current mortgage provider (GE Money) seem to very rarely (if ever) agree to this (going by some online forums). Is that the case?
Any advice or information would be greatly appreciated.
Thanks for taking the time to read this.
John.
I'm about 6 years into a mortgage for the house I currently live in - the house value is around 100K and the mortgage is 95K - depressingly the house prices in NI haven't rebounded like most of the UK.
I want to move house and recently agreed a new house. The plan is just to get a new mortgage for the new house and keep the current house to rent it out. I just got accepted for the mortgage (HSBC) for the new house but have been told it's conditional on converting the existing mortgage to a BTL.
My problem is that I'm on a long term rate of 2% on current mortgage but with so little equity in the house that I'd be paying 6-7% on a new BTL. I can't pay off any extra of the mortgage as I've only enough savings to cover the deposit of the new house.
I never knew having 2 residential mortgages was such a big problem and now the delay of trying to sort all this out might mean I lose out on the house that I've agreed.
Do all mortgage providers have the same restriction on 2 residential mortgages?
I've heard of something called consent to let but my current mortgage provider (GE Money) seem to very rarely (if ever) agree to this (going by some online forums). Is that the case?
Any advice or information would be greatly appreciated.
Thanks for taking the time to read this.
John.
0
Comments
-
Sell your existing house0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards