re-mortgage as buy-to-let?

Doglover88

currently 2 1/2 yrs into a fixed 5 yr mortgage (4.75%) on my first home. Question is can i re-mortgage at the end of my 5yrs with a buy to let so i can let the property in order to allow me to apply for another mortgage for a purchase to live in?
Hope that made sense
glen

herbiesjp

You could if you wanted to - as long as the figures fit and it is afordable - do that now.

Ask you currnet lender for consent to let.

Buy new property with a lender on a let to buy basis

Doglover88

Herbie do you think they'll allow me to let the property even as its a personal mortgage? also its a leashold maisonette would this effect it at all?

herbiesjp

Depends how long you have had it and who the lender is.

Being a leasehold maisonette will not matter really

Doglover88

The mortgage is with Bristol and West and Ive been with them 2 1/2 yrs in total. Only been in the property a few months though I guess this could effect it?

dougk_2

Bristol and West are more than used to BTL properties and offer thier own BTL mortgages, so I would not think they would be as much of a problem as other lenders could be. I would give them a call. I have found them to be very helpful in the past.

Fairdo_2

As herbiesjp stated, you could ask Bristol & West for consent to let, but I would ask them hypothetically first, as they can sometimes state that they will charge a fee for doing so, or even load the rate.

The question you asked related to being able to go "Let 2 Buy" as opposed to Buy To Let and some Lenders will allow you to do that by writing off the current mortgage if the rental income means it pays for itself.

You normally need at least a 5% deposit to do this and the new mortgage is assumed on your income alone.

Indispensable_Hobbes

As said before if your current lender does them which I would assume they should you could get a letting agreement for one year but then after that year you would have to either move back into the property or change products to a BTL, dont think you have to go through a full remortgage if you do it through the same company.

If you change the product now if your still in the early repayment charge period your still going to have to pay that charge.

I think

thaylock

Why not apply for a 'Rent to Buy' mortgage, which is similar to a 'Buy 2 Let' but you are able to rent your existing property to purchase another one for you to live in.

nrsql

Getting a new mortgage on another property won't be affected by your current mortgage as long as the rent covers the mortgage on the rental property. They won't ask what type of mortgage - just the value and the rental income. That's if you go through another company - if you do it through the existing one they might make a connection.

If you inform the current company (and you should) they will probably add 1% or so to the rate or transfer to a buy-to-let depending on whether you say it will be long term. They will probably also ask for a fee and possibly to see the lease and charge for processing that too.

It's quite a common thing to happen and most companies can handle it.

herbiesjp

Not all lenders ignore properties in the background - so worth a bit of research before getting anything agreed.

Not all lenders increase the rate instantly, if currently on a fixed/tracker/discount rate.