How do I?

stoke_bishop

How do I fix for 5 years (to be nice and secure with what I am paying) but for 3 years of that live in the property and 2 years of that be abroad so the property will be let out. For those 2 years I need to be on a buy2let. But I would rather not have to be on a buy2let for the whole 5 years (worse rate?).
I'm worried that after three years the only buy2lets will be expensive (if interest rates have gone up). I'd rather fix for longer therefore. But what if the mortgage company insist that I change product and only offer me a more expensive rate? How do I resolve this?


Thanks for any help.

MortgageMamma

you dont have to be on buy to let for those two years, you could just obtain consent to let on a temporary basis from your chosen residential lender. there is sometimes a fee for this and your rate will increase to reflect the additional risk but its a very straightforward process.

stoke_bishop

MortgageMamma wrote: »

you dont have to be on buy to let for those two years, you could just obtain consent to let on a temporary basis from your chosen residential lender. there is sometimes a fee for this and your rate will increase to reflect the additional risk but its a very straightforward process.

Thanks for the advice MM. What happens in this scenario.

A gloomy three years has passed which has seen the base rate go up 1-2%, say. Would they then move me to a rate which was 1-2% + offset + current? where offset is their offset of buy2let rate from regular rate, and current is what I am currently paying. IE would they try to get me on their then current product. Or would they be nice and charge me current + offset?

That's my biggest concern.

Thanks

MortgageMamma

Depends on the lender and market conditions at the time, but must lenders just load the existing rate by around 1%, if you are still unsure go for a three year product then look at it again, if rates do continue to rise you will feel it sooner or later anyway - I'd rather face a 2% rise after three years than a 5% rise after 5 if you know what i mean - gradual changes are the easier ones to cope with. also, if rates came down you would be stuck on a five year fixed, and if you decided to sell rather than rent you would incur early repayment charges

stoke_bishop

MortgageMamma wrote: »

Depends on the lender and market conditions at the time, but must lenders just load the existing rate by around 1%, if you are still unsure go for a three year product then look at it again, if rates do continue to rise you will feel it sooner or later anyway - I'd rather face a 2% rise after three years than a 5% rise after 5 if you know what i mean - gradual changes are the easier ones to cope with. also, if rates came down you would be stuck on a five year fixed, and if you decided to sell rather than rent you would incur early repayment charges

You mean 1% above what I would be currently paying or 1% above their current regular product?

Ta