Remortgaging advice needed

mrbios

Hi There, first post here, i can't find anything advising me on this anywhere...

Me and my partner currently own a flat, we originally purchased it to live in it back in 2006 (great time to buy huh? ) but over the years our family grew, we turned to renting ourselves and letting our flat out. We obtained permission from our lender to let our flat, which incurred a fee we have to pay each year in order to do so.

Now, I desperately want to remortgage it as we're paying through the nose on repayments every month, but i don't know if it's going to be possible, because i can't get a buy to let mortgage as no one seems to offer anything about 80% on those and we're currently sitting at nearly 90%.... so what do i do? Will lenders permit letting on a mortgage that isn't buy to let during remortgaging, or is that avenue going to be blocked off to me entirely?

My only other option is to sell it but that means leaving the market entirely which people keep telling me not to do, but i can't keep losing money on it every month

DandelionPatrol

mrbios wrote: »

.... My only other option is to sell it but that means leaving the market entirely which people keep telling me not to do, but i can't keep losing money on it every month

Do what is sensible, not what other people tell you to do.

If your capital gains will do better than wipe out your monthly losses and it is not putting you into debt, then it might make sense to hang on to the property.

But then, if you are now renting yourselves you need to do the sums to see if it makes more sense to liquidate this asset and buy your own home.

No one here can give you a worthwhile answer either way without knowing as much about your circumstances as you do yourself.

amnblog

You won't re-mortgage on a buy to let basis at nearly 90% loan to value.

Pay some off and re-mortgage, keep, or sell.

Technically you only need to get the mortgage down to 85% loan to value to re-mortgage, but to make a saving against your current rate you may need to drop to 80% loan to value or 75%.

The fact this is your only property severely limits your options as lenders do not like buy to let borrowers who do not own their own home.