Switching from residential to buy to let at end of current mortgage

eddiejones

Hi folks,
I am on a residential mortgage, and the two year introductory period ends shortly. I want to remortgage, but as a buy to let, probably with a new lender.

Does this mean a completely fresh mortgage application? Rather than a 'remortgage' application? Or is 'buy to let' always more convaluted at 'remortgage' time?
I ask because if I go to mortgage options, I can pick between 'first time buyer', 'remortgage' or 'buy to let'. And at a quick look, remortgage didn't seem to cover non-residential...

foxy-stoat

It will be BTL, use a local broker.

eddiejones

Why should I use a broker btw? Am happy just picking a bank based on advertised rate.

Cscott139

what are you going to be doing? are you buying a new house? if not some lenders are not happy with buy to let mortgages being offered to people who wont be a residential homeowner. Quite a few lenders who offer buy to let will only do it through a broker so that would be your best option. It will need to be a brand new application unless you just ask your current provider for consent to let but this is rarely a long term solution.

foxy-stoat

eddiejones said:

Why should I use a broker btw? Am happy just picking a bank based on advertised rate.

Unless you know the lending criteria of all the lenders and are prepared for multiple applications go ahead.  

eddiejones

Cscott139 said:

what are you going to be doing? are you buying a new house? if not some lenders are not happy with buy to let mortgages being offered to people who wont be a residential homeowner. Quite a few lenders who offer buy to let will only do it through a broker so that would be your best option. It will need to be a brand new application unless you just ask your current provider for consent to let but this is rarely a long term solution.

I am (or have) moved in with my partner. So I want to let it out. Presumably big banks like Santander and TSB will deal directly with me?

Ok, brand new application, thanks. So will I have to appoint a solicitor also? I see that in standard 'remortgages' both the aforementioned banks will sort that part for you.

Cscott139

some lenders will offer free legals and some wont, depends on the deal. You will have to speak to them to see if they will deal with you and if you meet their criteria. 

csgohan4

eddiejones said:

Cscott139 said:

what are you going to be doing? are you buying a new house? if not some lenders are not happy with buy to let mortgages being offered to people who wont be a residential homeowner. Quite a few lenders who offer buy to let will only do it through a broker so that would be your best option. It will need to be a brand new application unless you just ask your current provider for consent to let but this is rarely a long term solution.

I am (or have) moved in with my partner. So I want to let it out. Presumably big banks like Santander and TSB will deal directly with me?

Ok, brand new application, thanks. So will I have to appoint a solicitor also? I see that in standard 'remortgages' both the aforementioned banks will sort that part for you.

eddiejones said:

Why should I use a broker btw? Am happy just picking a bank based on advertised rate.

Then good luck with your 2 hour interview with some lenders, sending multiple documents, playing ping pong emails and generally wasting your time which could be better spent on earning money. 

Do you know which lenders to approach if your not a vanilla case? Have something unusual like self employed, then your going to be stuck if you only have less than 1 years accounts, worse if your using bounce back loans. 

Do you know that BTL criteria is alot stricter than Residential, do you know the % of equity you must have and the salary multiplier for each lender? Do you know making multiple applications and being declined, hits your credit history, further hampering your quest for a BTL?

My broker was well worth their money, Paid or unpaid your choice, but you generally get what you pay for. 

But your choice if you want to go it alone as your first post suggests you  may need some help, no harm in asking a broker who is not a conveyor belt provider 

Thrugelmir

eddiejones said:

Why should I use a broker btw? Am happy just picking a bank based on advertised rate.

Majority of BTL products are now only available through mortgage brokers. That's the nature of the market. 

amnblog

Sounds like a no brainer but plenty of scope to get in a pickle with this Eddie.

Use a Broker.

haras_n0sirrah

Agree with the others. Getting a mortgage isnt just choosing a deal from a website. The criteria is a minefield. With btl you need to consider
1)Minimum income- some are £0, some are 25k, some are 40k
2) lender stress test - your rent has to cover the mortgage by a certain percentage. These percentages are all different 
3) not buying on - a lot of lenders will only do a residential into a buy to let if buying on yourself (as you are then less likely to move into it yourself)
4) products - most btl products are broker only 
5) time - lenders direct have about a 6 week wait for an appt going by the threads on here and then a 2 hour interview. Get it wrong and you have to find a new lender. Pay a broker £500 and they do it all for you. The searching, the paperwork, the two hours on hold to a lender for an update (barclays was 3.5 hours on monday)
On btl you dont get lender protection as it is deemed a business product. If you aren't sure of what you are doing contact a broker. If you don't have one some of us who post here are independent brokers. We are identifiable by our signatures. We are not allowed to approach posters but most of us are happy to respond to pm's asking for help.