Buy to let or not

tallpaulunderwood

Hi Folks,

A couple of situation have colided so I'm seeking your advice.
Firstly, our current mortgage has come to the end of it's discount period.
Secondly, we'll shortly be moving abroad & will be letting out our house.

I plan to remortgage, but would this be regarded as a buy-to-let mortgage or a 'standard' one ?

If I didn't remortgage & stayed with my current lender, would the fact that we are letting the property out affect the rate we currently have ?

Thanks for any advice.

TP

MuDvAyNeX

If you were to let the property then you would need a buy to let, if you just started to let the property out and didnt inform your mortgage company they could ask you to repay the mortgage and leave and at the same time charge you for your ERC (if applicable)

But some companies will give you *Consent to Let*, its not a buy to let but you are able to let the property out for 12 months, after the 12 months you would have to reapply for it again, some lenders allow this some don't.

I would consider speaking with your current lender to see if they offer a buy to let and if they would be able to give you a deal to swap it over, again some lenders might allow this but as far as i am aware most will ask you to redeem and take out a brand new mortgage with them or another lender

Mortgagehero

As your current mortgage has come to the end of its discount period it is an opportune time for you to switch to a buy to let mortgage. As already mentioned some lenders will give you "consent to let" but this is rare, but you should check with your current lender to see if they will do this for you and what new discounts they can offer you. The buy to let market is a very competitive place and you will find that the deals available are similar in cost to residential ones.

tallpaulunderwood

Thanks for the very quick replies ! I shall follow your advice.

On possible remortgages, am I most likely to get the best deal via a broker or will I get better value going direct ?

I'm looking at the total cost over two years (mortgage, fees etc) for an interest only mortgage of £142 on a £450 property, the term (though pretty irrelevant) is 12-years. Ideally no redemption at any time. Fixed, variable, discount I have no preference.

I see some of the remortage fees now by £1000s ! I'm not sure whether these are from lenders or brokers, or both. A £4000 remortgage fee will make quite an impact when apportioned over 24-months !!

Thanks, TP

Mortgagehero

Brokers do have access to exclusive deals that are not directly available to the consumer. Any decent broker will cost search the whole of the market and cost the deal out over the "tie in " period to establish who is the most competitive, they will include all the relevant costs in this research. Also, as i'm sure your aware, there is no need to pay for this service as brokers are paid commission by the lender and should not need to charge you.

herbiesjp

tallpaulunderwood wrote: »

Thanks for the very quick replies ! I shall follow your advice.

On possible remortgages, am I most likely to get the best deal via a broker or will I get better value going direct ?

I'm looking at the total cost over two years (mortgage, fees etc) for an interest only mortgage of £142 on a £450 property, the term (though pretty irrelevant) is 12-years. Ideally no redemption at any time. Fixed, variable, discount I have no preference.

I see some of the remortage fees now by £1000s ! I'm not sure whether these are from lenders or brokers, or both. A £4000 remortgage fee will make quite an impact when apportioned over 24-months !!

Thanks, TP

Looking at deals with no penalties at any time will limit the choices available. However you should still be able to find some deals that offer free legal fees and valuation for you.

What rental income do you expect on the property?