New buy to let or just inform existing mortgage provider?

UKSBD

Thrugelmir wrote: »

Factor in the changes announced in July's budget with regards to interest relief. May take the shine off the investment.

I'm not really doing it as an investment more of a cost cutting exercise.


Don't want to sell the house, but it's currently costing me about £300 a month just sitting there doing nothing.

dimbo61

Well then ask for Consent to Let and rent out the property.
Do you live local? Are you happy to find tenants and look after the property?
Get Landlords Insurance, Gas Safe certificate, Electrics checked etc.
Does it need any work before renting ?
You could consider a Letting Agent BUT the buck stops with you the Landlord so make sure the deposit is registered and prescribed Information is given to the new tenants within the 30 days.
Join a Landlords association and read up GM advice about being a Landlord

UKSBD

dimbo61 wrote: »

Well then ask for Consent to Let and rent out the property.
Do you live local? Are you happy to find tenants and look after the property?
Get Landlords Insurance, Gas Safe certificate, Electrics checked etc.
Does it need any work before renting ?
You could consider a Letting Agent BUT the buck stops with you the Landlord so make sure the deposit is registered and prescribed Information is given to the new tenants within the 30 days.
Join a Landlords association and read up GM advice about being a Landlord

I live about 10 minutes away.


It was tidied up last year (including electrics), no gas or oil to worry about.


It's been treated as a sort of 2n'd home for past 18 months, hence why no utilities, tv, sky, etc. were cancelled.


I was thinking of going down the holiday home route from spring next year but have now been approached by someone who already lives in the village who would like to rent it.


It would make a lot of sense to, not just because of the rent, but I would save the £300 it is costing me at the moment.


I've made an appointment now to see if it's better to see if I can switch the mortgage to the house I'm living in, so the one I rent out will be mortgage free.


I know I lose out on tax breaks, but if personal mortgage is 1% less than a buy-to-let that will more than balance it out.

silvercar

I've made an appointment now to see if it's better to see if I can switch the mortgage to the house I'm living in, so the one I rent out will be mortgage free.


I know I lose out on tax breaks, but if personal mortgage is 1% less than a buy-to-let that will more than balance it out.

It is the purpose of the loan that counts not where it is secured. No obligation to secure the mortgage on the let property, or indeed to secure it at all.

Some people increase their home mortgage to muscle up a deposit and take a BTL loan for the rest, both would be allowable expenses against tax.

UKSBD

Well that was a lot easier than I thought it would be.


Had an appointment at Lloyds today, explained the circumstances and why I have had such a low income for past 2 1/2 years.


They put everything through the system and it came back as I can have £174k (only want to borrow £45K) for a buy to let on the empty property


I have to get SA302 for year end 14, 13, 12 and fortunately I had a 30k dividend in 2012, although she said they only really based it on 2 years when I only took out £8k a year.


There's a £1,000 product fee, but it still appears to work out cheaper than staying with Nationwide and changing to a buy to let.

UKSBD

Another nice surprise

Just downloaded my SA302's to discover I actually took a dividend in 2012 - 2013 too, could have sworn I didn't take one that year, but on checking back I see I took it in mid 2012.