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Regulated BTL
Durban
Posts: 485 Forumite
How does the affordability work for a regulated BTL for family.
I have a BTL property at the moment that has an ordinary BTL mortgage on it with tenants. The mortgage is based on the rent.
If , one day , in the future , I wanted to let this to family I know that I would have to change the mortgage to a regulated BTL.
My question is , is a regulated BTL mortgage based on income or rent or both. My understanding of it was that rent was discounted from affordability and it went on income only.
Is a regulated BTL also interest only like a normal BTL mortgage. I know that a lot of lenders don't do them but are slowly becoming more popular. Are they hard to get and is the interest higher than a normal BTL mortgage.
This is not something that I want to do now and know all the pitfalls etc of renting to friends and family.
I have a BTL property at the moment that has an ordinary BTL mortgage on it with tenants. The mortgage is based on the rent.
If , one day , in the future , I wanted to let this to family I know that I would have to change the mortgage to a regulated BTL.
My question is , is a regulated BTL mortgage based on income or rent or both. My understanding of it was that rent was discounted from affordability and it went on income only.
Is a regulated BTL also interest only like a normal BTL mortgage. I know that a lot of lenders don't do them but are slowly becoming more popular. Are they hard to get and is the interest higher than a normal BTL mortgage.
This is not something that I want to do now and know all the pitfalls etc of renting to friends and family.
1
Comments
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Regulated BTL's are assessed in the same manner as residential mortgages i.e. strict rules. Whereas unregulated BTL is commercial lending.1
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