Mortgage fixed year finished want but to let

raemon

Hi hope you're all well!

In a nut shell. Got 25 year mortgage done 10 years. My fixed year is ended and want to a buy to let mortgage. My circumstances have changed and I have to move so the house will have tenants moving in soon. I was wondering once a fixed rate ends do I need to notify the provider? As it automatically goes on svr. Also what's the best way to do this? Will i get penalties etc.

Any help much appreciated

Thanks

Please only helpful replies

somethingcorporate

Talk to your mortgage provider. Each has different T&Cs.



Yes, you need their permission (which may or may not be forthcoming). You could always remortgage to a B2L mortgage provider but this may be more expensive.

MortgageMamma

You have to apply to your mortgage provider for temporary consent to let, they will give this for a short period until you can move to a buy to let mortgage.

Take some professional advice as buy to let mortgages are not always straightforward. You need to ensure the tenancy type is right, the rental income covers the mortgage payments by a specific % which is usually determined by if you are a basic or higher rate tax payer, and there are a few other issues that will need addressing, such as ensuring your property is insured for tenant occupation, rent guarantee insurance etc. Also there is a minimum earned income requirement that landlords have to meet with most lenders to ensure the mortgage if paid if the tenant defaults on rent. there are a handful of BTL lenders who do not impose this minimum income level, but rates can be slightly higher for those.

Hope this helps. Find a good broker! You will most likely be charged a fee for the work but you have options to deal with that if you are tight for cash

MM