Put my house onto a Buy to let without buying another property?

SAMSONFIN13
SAMSONFIN13 Posts: 8
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edited 15 November 2023 at 2:44PM in Mortgages & endowments
I have no mortgage currently on my property, tbh bills cred cards etc are getting on top of me my business is slow due to current economic situation and i'm struggling to find a way out of it.
Only options are to try and sell (which isnt easy at the moment) and downsize, try to get a small mortgage which maybe hard due to outsanding debt balance or rent my property out.

Is it possible to get a small buy to let mortgage (just so i can clear existing debts around 25k) but not buy another property? thinking just moving back in with my dad for a while!

Most things i've looked at are let to buy where they want you to use the mortgage to buy another property

I know i could just let the house without mortgaging it but that wouldnt solve the existing debt problem as current monthly outgoings on cards and loans would exeed the rental income

Comments

  • Yes, you can get a BTL mortgage but £25k might be on the low side for them to consider it and they will need to allow debt consolidation as the loan purpose which not everyone does, so if you want to pursue it get a BTL broker.

    BTL is a business though and you should really do your research before you do this out of desperation. What if your tenants don't pay? The boiler breaks etc, can you then afford the new mortgage? 
  • Why not get a lodger in to help with the bills? Becoming a landlord is not something to go into without understanding all the responsibilities and risks  that go with being one .
  • Brie
    Brie Posts: 9,322
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    It's generally considered to be unwise to take unsecured debts (such as credit cards) and make them into secured debts (mortgage).

    And why take out a mortgage in any case?  Becoming a landlord/lady is a serious undertaking but why not do that without taking out the mortgage?   Move in with dad, rent your place, take the rent money and pour it on your debts.  

    Step one as with all debt situations is to talk to your creditors so they know you are aware of your finances and are doing something to fix the issues.  Wouldn't hurt too to talk to a debt adviser - NationalDebtline, StepChange, a Community Money Adviser (a service found in many food banks) or even post on the Debt Free forum on MSE.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • ACG
    ACG Posts: 23,622
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    You would need to put all of your current mortgage on to a BTL and then add an extra £25k for debt consolidation. It can be done. 

    However...
    1) It is subject to LTVs, if you go above 75% of the property value you might struggle. 
    2) You are wrapping up your credit cards into a mortgage, that means it will ultimately take you maybe 20-25 years to pay them off. 
    3) The rent will also need to stack up. 

    Another option could be to speak to your lender and request Consent to let - this is where they allow you to rent it out for maybe a year (maybe longer). You can see how your situation plays out. If you are moving back to your dads, presumably it would free up some money and you could make a dent into the balances? 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • MWT
    MWT Posts: 9,135
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    ACG said:
    Another option could be to speak to your lender and request Consent to let - this is where they allow you to rent it out for maybe a year (maybe longer). You can see how your situation plays out. If you are moving back to your dads, presumably it would free up some money and you could make a dent into the balances? 
    I don't think there is a current lender...

    I have no mortgage currently on my property...



  • ACG
    ACG Posts: 23,622
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    MWT said:
    ACG said:
    Another option could be to speak to your lender and request Consent to let - this is where they allow you to rent it out for maybe a year (maybe longer). You can see how your situation plays out. If you are moving back to your dads, presumably it would free up some money and you could make a dent into the balances? 
    I don't think there is a current lender...

    I have no mortgage currently on my property...



    Looks like I missed that bit. oops
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I'd suggest visiting the debt free wannabee part of the forum and putting together a SOA (outgoings/ income list). They may be able to suggest other options for you. 
  • kingstreet
    kingstreet Posts: 38,615
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    AFAIK there are limited lender options for those wanting a BTL/LTB but who won't be buying on.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,389
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    edited 16 November 2023 at 12:38PM
    A struggling business, unsecured debt building, and a mortgage fee property? The last thing you should be doing is securing the debt against your property.

    Move in with Dad and let the property until you get the debt down, that sounds sensible, but no mortgages.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • RAS
    RAS Posts: 32,466
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    Samsonfin13

    You were advised back in April to go over to the Debt free wannabee forum and get advice on solving you debt issues. Apart from anything else, your plans seem to be getting more and more desperate and talking them though would help you.

    You really also need to factor in the various costs. At present you have an additional £50k in equity, an additional £30k in debt as a result of the refurbishment and quite possibly 2x£5-10 in costs of buying and selling? 

    It looks like what you need is stable employment, possibly a lodger (7k tax free income is not to be sneezed at) and help organising your debt. Longer term you want to move, but right now that might not be a good idea. 

    The debt free lot are generally friendly, so give it a try.
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