Buy to Let my property refused by mortgage lender - so what is my next move????

[Deleted User]

You are allowed to offset your mortgage and bills against tax on rental income via a tax return. The rent a room scheme is only really useful for those that cant be bothered with tax returns and possibly have no mortgage

danol21

rent a room is not viable at all, my place is a one bedroomed apartment and not huge but also not small.

Its just crazy, i have a lovely apartment that is gonna be left empty!

[Deleted User]

Might as well sell it then and bank any money you have before the property crash.

MarkyMarkD

danol21The reason it's crazy is that you shouldn't buy a property on a mortgage with a 5 year tie in unless you are 1000% confident you'll want to live in it for 5 years. That's the simple (albeit not very helpful) explanation of your problem.People don't seem to consider/be advised about the issues of entering into long-term, binding contracts.No lender is committed to allowing its residential mortgage borrowers to let their properties out. Many won't do so; many will only do so in certain circumstances; many will require you to switch to a BTL mortgage (and pay an ERC to get out of your existing deal).

kissingthepink

Just rent it out and have all of your mail redirected to your GF's for the next 24 months. After 24 months remortgage onto a buy to let mortgage. That way the flat is let and you do not have to pay the early repayment charges.

Should a bank really dictate to you how you should be running your affairs and living your life? Do what is best for you.

herbiesjp

danol21 wrote: »

rent a room is not viable at all, my place is a one bedroomed apartment and not huge but also not small.

Its just crazy, i have a lovely apartment that is gonna be left empty!

Have you spoken to a fee free whole of market adviser to see if this is at all possible based on the higher figures you posted?

Gorgeous_George

It must be worth reducing the LTV by £5.5K so that you can rent it out at £6.6K per year. Remember, the LTV reduction is money in your pocket too.

Whatever you choose, it must make more sense for it to be occupied even if was for just £300 per month to a mate cash-in-hand (or rent-a-room as the Governement like to call it).



GG

Anon

If you were potentially willing to continue paying out your mortgage for a year without living there, paying back £5.5k now so that you can get the NR BTL (or £4k to get out early and get a better BTL rate elsewhere) would seem like a better option in the long run (assuming that you can afford it - which you may be able to by adding the penalty payment onto the amount borrowed as suggested above?).

Anon

ashm1

danol21 wrote: »

I have spoken to Northern Rock just and for me to leave now early from them i would incur charges just approx £ 3,700!!!!

Also i made a boo boo earlier, my mortgage is actuall £99,052 not 90k as i first said. SO my LTV is £99,052 (Loan) against £125,000 (Value).

So, does this literally mean i am stuck with them for the time being and so cannot rent out my property at all?

Are there mortgage lenders that would pay the charges for me?

Dan

Did you 'do up' the flat and have it re-valued ?

How much was spent on improvements ?