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Residential Mortgage v. Buy to Let
McNeely
Posts: 9 Forumite
We are first-time buyers, currently renting. We want to buy a house near my wife's parents. We want to move there, but will need to wait for a job - perhaps 2-3 years. Do we need to get a buy-to-let mortgage? Could we have a residential mortgage, because we intend to move there soon? Or could we move there for a short period of time, then start renting it? I'm only interested in options that are fully legal, and wouldn't breach the terms of the mortgage; not in "getting away with it".
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Comments
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It's all about intent.
If you intend to let it immediately, it's a BTL mortgage.
If you intend to live in it immediately, it's a residential mortgage.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
If you are going to let the property out from the get go then you'll need a BTL mortgage.
You could try to get a residential mortgage but lenders do look at things like whether or not the property is in a commutable distance to your place of work. If you were somehow able to secure a residential mortgage and then applied for consent to let 6 months later there's no guarantee you'll get it. In fact it would look rather fishy.0 -
You would need at least 20% and for most BTL lenders 25% deposit.
You also need to earn £25,000+ and own your own home as well either with or without a mortgage.0
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