Remortgaging from residential help to buy mortgage to buy to let

FTB-James

We currently have a house with help to buy on it and a residential mortgage.

Outstanding mortgage 83000
House value 140000
Help to buy would need a repayment of 28000

This would mean we need a mortgage of £111000 on a house valued at £140000 ( 80% LTV)

Has anyone remortgaged and used the additional borrowing to pay back help to buy and change the home from a residential to buy to let mortgage

Asked current lender and they said no although they did say apply for consent to let (which we have)

Our mortgage advisor is struggling to find a suitable mortgage at the moment

Caz3121

FTB-James wrote: »

they did say apply for consent to let (which we have)

you also need to get consent from the HTB agent which may be a sticking point

kingstreet

Caz3121 wrote: »

you also need to get consent from the HTB agent which may be a sticking point

Why, when the HTB loan is being repaid?

FTB-James

If we are repaying the help to buy they don’t need to give consent to rent it out

What I’m asking: has anyone done this and if so which mortgage company did they use?

kingstreet

An 80% LTV BTL mortgage is going to see a smaller pool of potential lenders as many 'top-out' at 75% and success will be determined by how the renal income stacks up. Do you have a rent assessment from a letting agent?

Since lenders started working to the PRA rule changes, many have moved to a rental requirement of 145% of the monthly mortgage interest assuming 5.5%pa.

On a £111k mortgage that would mean min rental income of £738 per month to make this feasible.

FTB-James

Our neighbours house is rented at £700 and has been for two years. I think we’d get £750 so can cover this

The bit that’s important is which lender will let us have 80% including repaying the help to buy element

dimbo61

So you will need a broker's help with this.
They will also do a full financial assessment on you and your partner ? If a joint application.
Where are you moving too and why ?
Are you buying another property to live in ? 3% extra stamp duty on top of all the other costs.
Do you have a deposit and savings to cover if you have a void ( No rent )
Your Tax situation ! Higher rate taxpayers ??
Location, type of property , parking, how close is it too the shops, train station, trams/buses etc.
You are starting a new business so may need a business plan to show a lender.