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Switching to BTL After 2 Year Mortgage? (Haven't Purchased Property Yet)
The_Fat_el_Hombre
Posts: 230 Forumite
I'm currently living in a property that I'm looking to sell. When sold, I'd expect to have between 75-90k. From here I think I've got 2 options:
1 - Buy a new place with a new mortgage + whatever the equity is from the sale of my property
2 - Buy a new place with a new mortgage but use a smaller amount of the equity for the minimum deposit, leaving some money left over for another property.
The idea behind the second option would be to live in the property for 2 years then switch to a BTL and buy somewhere else to live in using the remainder of the equity. Obviously I've googled switching a mortgage to BTL but it seems a bit wishy washy (e.g. "depends on your lender/situation"). Does anyone know of what the likelihood would be of me being able to do this, and/or if there are any particular lenders I should (or shouldn't) look for? I'm currently with Santander if that affects anything at all and my credit rating should be good.
Obviously I need to be crystal clear as to whether the 2nd option is possible as it will have a reasonable impact on where I will live. Note that I've seen some suitable properties within the budget of option 2, but obviously more money would open up better options. The idea would be to rent the first property out for 10 years or so. I'm aware of capital gains tax involved with BTL.
Any advice appreciated
1 - Buy a new place with a new mortgage + whatever the equity is from the sale of my property
2 - Buy a new place with a new mortgage but use a smaller amount of the equity for the minimum deposit, leaving some money left over for another property.
The idea behind the second option would be to live in the property for 2 years then switch to a BTL and buy somewhere else to live in using the remainder of the equity. Obviously I've googled switching a mortgage to BTL but it seems a bit wishy washy (e.g. "depends on your lender/situation"). Does anyone know of what the likelihood would be of me being able to do this, and/or if there are any particular lenders I should (or shouldn't) look for? I'm currently with Santander if that affects anything at all and my credit rating should be good.
Obviously I need to be crystal clear as to whether the 2nd option is possible as it will have a reasonable impact on where I will live. Note that I've seen some suitable properties within the budget of option 2, but obviously more money would open up better options. The idea would be to rent the first property out for 10 years or so. I'm aware of capital gains tax involved with BTL.
Any advice appreciated
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