Advice Short Term Mortgage or Buy to Let

jaller79

Advice please for an awkward one - apologies !!

Finance - I need a break due to personal circumstances.

Future requirements stay living in Property or rent out potentially



Looking to purchase a prooperty to live in and maybe renovate for 6 months then either live in it or rent it -
After 6 months there may be a lump sum from sale of my family home - so need a mortgage with complete flexibility. Short Term.

My requiremnets as below

Cost 130000 -
Cash Deposit 40k =
Required Mortgage = 90k -
Lumpsum payment in 6 months = 60K
After 6 months = 30K

Convert to Buy to let -if circumstances change

My details single income - 35K


Questions -

Option 1 - Could I purchase the property with a buy to let mortgage - then live in it for 6 months
option 2 - Take a traker with no repayment charges - Offset - Flexible.


Thanks hope that expains this

John

YHM

BTL mortgages are based on the property being rented / rentable from day one. Any sniff of you wanting to live in the property, this would not be classed as an unregulated traditional BTL.

jaller79

Whats the minimum term for a mortgage when does a mortgage become a bridging loan -I wonder
- Ok residential mortgage is key then if I decide different I can convert to buy to let.
Are there products that allow a mortgage for 6 months or one year only. with no repayment fee.

YHM

Bridging loans are usually capped at 12 months with a solid exit strategy, however, there will be fees.

jaller79

Or could I get a Mortgage for a year and convert to a buy to let -as an example.

jaller79

Thanks for help - what I need is a solution - anyone know of a product or is a standard mortgage with no exit fee the option -

YHM

There are plenty of flexible mortgages available to you. A concern for a lender would be how quickly you repay the mortgage in full.

jaller79

So im looking for a flexible mortage with no repayment charges - above was not an option BTL - ill rule that out.

getmore4less

Plenty of flexible options or an offset.

Just don't talk about short term lending or potentially letting it out to the lenders.

for cash flow a longer term is the way to go you can always pay it off earlier.

jaller79

Thanks - so take a flexible mortgage with offsets and no repayment charge - dont tell them I only want it for a year ??? Would that be sensible what if I came to change to BTL and was not allowed?

YHM

A lender cannot restrict a remortgage to another lender, however, they can just not lend the money if they feel it would only be a short-term lend