Let to Buy and second mortgage

nwhittak

Hi, I'm looking for a bit of advice around letting out my house and purchasing a new house.

1. I have quite a good mortgage at the moment 0.25% above base rate , we owe about 100k . If I let my house out to buy a new one I have to change this mortgage from part interest only and repayment to full repayment as it will need to change to a buy to let mortgage? I can't port it to the new one?

2. I'm trying to keep my monthly payments similar when we buy the new house but Im finiding it confusing. So, I think I'll need a mortgage on my current house that I will rent out plus a mortgage for the new house. For the mortgage on the new house its probably better as interest only to keep my monthly payments down , for an interest only mortgage on around 250k what can I expect to be paying?

theartfullodger

Can you transfer mortgage to new property & get b2l on current?

Go speak to a couple of brokers

dimbo61

Sorry but I think your plans won't work.
Very few lenders do Interest only Mortgages on a residential property where you are going to live.
You already own one property so face 3% extra stamp duty if you don't sell your existing home.
You have a great deal and I am sure your existing lender would love you selling the property and redeeming the mortgage.
No they will not allow you to transfer the current mortgage to a new property.

kingstreet

Most lenders won't allow a port when remortgaging, only on sale & purchase. I can think of the odd one which will do a port to your purchase while you remortgage the existing property away from them.

Assuming the existing mortgage can stay where it is, why would you have to change from part and part to repayment? Who has told you this? Change to BTL? Why? Have you discussed consent to let with your current lender?

Where is the deposit for the new purchase coming from?

I suggest you contact an independent broker and answer the questions to him/her rather than on here. Someone who knows the full details of your case will be best placed to advise you correctly.

nwhittak

So, I would keep my 100k mortgage on my house , rent it out so change to BTL mortgage - could I then change it to interest only

kingstreet

You have two options for your present home.

First, you ask your current lender for consent to let and your mortgage remains broadly the same, but you may have to pay a fee, a higher rate or both.

Alternatively, you obtain a new BTL mortgage from a new lender to replace the current one. This is a BTL remortgage. The terms will be different.

You need the help from the broker previously recommended. No-one here can make firm recommendations as we don't know you or your circumstances.

Caz3121

how much is the current property worth? what is the current LTV?

nwhittak

The property is valued at 340k , with 98k left on the mortgage.

wolfplayer

Why do you want 2 properties? For profit?

There's lot of commercial risks and responsibilities in being a landlord.

Also do you know about increase in SDLT and section24?

I am positioned to take advantage of one of the house greedy people who've done exactly what you would like to do in the next market squeeze.

wolfplayer

Edit: wrong thread dammit

nwhittak

WolfPlayer,

Would you like to expand and provide more detail rather than make assumptions?