Bit of an unusual situation

Gen_Y_Saver

Hi all

A few years ago, I purchased a property. I lived in it for a bit, but then let it out as I had to relocate to another city for work.

I now want to buy a second home and have recently had an offer accepted on a house I really like.

My query: as the above will be a purchase for a second home, will I be unable to get a residential mortgage? My first house has a residential mortgage on it. Will I have to get a buy-to-let mortgage on my second house (which are generally more expensive)?

I don’t plan on selling my first house as it is achieving a good yield.

Bit of an unusual situation as my second home will be my main residence and my first a B2L.

Thanks for all your help

Gen_Y

martinthebandit

Uh oh.

You should change the mortgage on the property you are renting out to a buy to let mortgage.

Well actually you should have done that before you let it.

AnotherJoe

Whats unusual is you breaking the terms of your mortgage agreement - well, maybe its not that unusual. Are you declaring the rental income for tax and following the other legal requirements of being a landlord?

I take it you are aware of the extra 3% SDLT on your new purchase?

Gen_Y_Saver

Of course I am declaring my rental income.

Also, my lender has granted consent to the letting of my property for 1 year due to my relocation.

kingstreet

Some lenders don't like two 'residential' mortgages, Coventry BS being a prime example.

You should have a few lenders to go at if you speak to an independent broker.

SDLT 3% surcharge applies on top of usual SDLT.

amnblog

Your new mortgage will be a residential one.

The Lender may ask you to confirm you have consent to let on the current mortgage.

Prepare to pay an extra 3% stamp duty land tax on the new purchase.

getmore4less

This is far from "unusual"

Broker to deal with the right lenders.

Deposit will be the key
Then affordability
along with your current lenders view on continuing consent to let or the costs of changing to BTL.