Remortgage - BTL Decision

alienuk

Property 1 - Living now - With Nationwide -  Current Outstanding LTV - 86% - Mortgage ending by August 2021
Property 2 - Moving to a new built property that is under construction - Keys available by October 2021 / November 2021 - Mortgage application made and all approved.
Plan - Property 1 will be rented out when I move to Property 2 in October / November 2021. 
There is a gap of 2 to 3 months between the time the P1 mortgage end and P2 mortgage starts.  

1. Nationwide is happy to do remortgage on property 1 however, I am not sure if I can move to a BTL mortgage whilst I still live  at the property. 
2. Another thought is to move to Nationwide tracker product and when I do the home move to property 2 , apply for BTL and rent out the property. Will this work? Assuming that I take the tracker product from Nationwide to cover my gap period of 2 to 3 months and then ask for Consent to Let letter, Nationwide will increase the interest by 1%. This is going to cost me dear as I could find better deals elsewhere in the market. 
3. Please note that my LTV is still 86% , I should still put more money into the mortgage pot to bring it down to 75% to find reasonable deals or do I really get any BTL offers for that sort of LTV? 
4. Are there any reasonable methods to improve my property 1 price so I will be able to bring the LTV down to manageable levels? 

Appreciate your thoughts on the above situation. Thanks in advance. 

K_S

@alienuk

- Based on the limited info in your post, option 2 is what I would consider starting off with.

- If the mortgage application on property 2 was done as a home-mover application (ie with the assumption that property 1 would no longer be owned by you upon completion of the purchase of property 1), that may need reworking. If you mentioned the background property and mortgage to remain in the application, then that part should be fine.

- You may find that your BTL LTV is limited by the estimated rental income for the property. If not, then there are first time landlord products available at 80% LTV, though they're a good sight more expensive that 75% products.

alienuk

K_S said:

@alienuk

- Based on the limited info in your post, option 2 is what I would consider starting off with.

- If the mortgage application on property 2 was done as a home-mover application (ie with the assumption that property 1 would no longer be owned by you upon completion of the purchase of property 1), that may need reworking. If you mentioned the background property and mortgage to remain in the application, then that part should be fine.

- You may find that your BTL LTV is limited by the estimated rental income for the property. If not, then there are first time landlord products available at 80% LTV, though they're a good sight more expensive that 75% products.

Thanks for your comment. Yes, the background property was declared and I will pay the ADS associated.