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New mortgage now I have accommodation through employment?
KDL2020
Posts: 2 Newbie
Hi all, can anyone tell me if there is a specific mortgage for people who receive accommodation through their employment? We moved out of our owned property 2 years ago, and now have a tenant in situ. Our mortgage was changed to a 'to let' mortgage with extortionate interest rates. Is there an alternative?
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Comments
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Talk to a mortgage broker and remortgage to a better rateInitial mortgage bal £487.5k, current £258k, target £243,750(halfway!)
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),Target is to pay it off in 10years(by 2030🥳).MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
Am a single mom of 4.Do not wait to buy a property, Buy a property and wait. 🤓0 -
@KDL2020 You need to remortgage to a buy to let mortgage to bring down your payments. You will need at least 20% equity in the property to do so, and 25% to get decent rates.0
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Thanks @jamielutz1987. We have remortgaged to a buy to let. Current rate 4.74% (includes to let at 1%). We also have a HCA loan (covered 20% of property price) as we used help to buy scheme. We have been told that we won't be able to move lenders whilst HCA loan is less than 5years old as we are currently on their 0% rate. Do you know if this is true? Thanks.0
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Apologies, I don't know how it works with remortgaging to a BTL lender in your case. I suspect you will be unable to do so without paying off the HCA loan as part of the remortgage. I would recommend consulting with a broker.0
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There are some lenders that allow you to retain this as a residential mortgage with immediate and indefinite consent to let. I havent researched one post Covid so they may be restricted but definitely worth a look as would avoid having to do anything with the HCA stuff (assuming they have also allowed the renting)1
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