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Changing mortgage type
danielanthony
Posts: 517 Forumite
Hi,
I know someone who intending to get on the BTL ladder but in an unconventional way.
She and her BF have bought a property on a residential mortgage, the intention is then to get permission to let from the lender after 1 month and keep renting it out on a 90% LTV and avoiding the 3% BTL surcharge. Additionally, after a couple of years, they intend to take the equity out of property 1 and start the process again on property 2.
Is this plan feasible? I think she'll get into trouble with her mortgage company but she says she has lots of friends who have done this exact same thing and now have a small portfolio of properties without having to put down the 25% deposit usually associated with BTL mortgages.
I know someone who intending to get on the BTL ladder but in an unconventional way.
She and her BF have bought a property on a residential mortgage, the intention is then to get permission to let from the lender after 1 month and keep renting it out on a 90% LTV and avoiding the 3% BTL surcharge. Additionally, after a couple of years, they intend to take the equity out of property 1 and start the process again on property 2.
Is this plan feasible? I think she'll get into trouble with her mortgage company but she says she has lots of friends who have done this exact same thing and now have a small portfolio of properties without having to put down the 25% deposit usually associated with BTL mortgages.
0
Comments
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CTL after a month?
Which lender is going to grant that?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 -
Nationwide apparently.
I'm unconvinced but her friends are saying its possible and "look at all my BTL's".
Not sure how much is truth vs BS.0
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