Switching to a buy yo let mortgage, new deposit ?

Shannonplews

We are going to rent our house out but need to change our mortgage over to a buy to let mortgage. We’re with Halifax but have to remortgage with someone else as they won’t let us switch.

If we remortgage will we have to put another deposit down? Even though there’s now equity In the property?
We have £60000 left on the mortgage but house is now worth £95000.
Any advice would be appreciated.

[Deleted User]

The equity is your deposit

kingstreet

Did you ask Halifax about consent to let or simply ask them if they would change your mortgage to BTL?

If this is likely to be short-term, a temporary consent to let might suit you better. When asking, don't use words like "investment" but stress the temporary nature of your requirement.

Retired_Mortgage_Adviser

The 35k equity in your property is the deposit. At 65% LTV, you *should* have plenty of options (also depends on the achievable rent and limited somewhat if you are a new landlord) for BTL mortgages to remortgage to and should not need a further deposit.

Are you having to pay ERCs to switch away from Halifax? If so you might well be better off obtaining consent-to-let and then remortgaging to a BTL at the end of the fix.

It's a very competitive market for BTL mortgages out there and I hope you are using a broker.

Shannonplews wrote: »

We are going to rent our house out but need to change our mortgage over to a buy to let mortgage. We’re with Halifax but have to remortgage with someone else as they won’t let us switch.

If we remortgage will we have to put another deposit down? Even though there’s now equity In the property?
We have £60000 left on the mortgage but house is now worth £95000.
Any advice would be appreciated.