Buy to let

cupofcha

Hello,

Can anyone please tell me what will happen if I tell my mortgage company that I am letting the property or am going to let? I am in a situation where I want to remortgage a house which i used to live in and am now renting out since 6 months ago. I now live somewhere else. When I went to remortgage the first house today they asked had I any any other mortgages and I said yes. I was afraid of telling a lie. So they assumed I was letting this additional house(my current home). In truth I am letting their house and living in the second. So when they asked what rent i was getting I told them 450. Yes this covers their mortgage but they assumed it was to cover my current home which has a mortgage of 700 and so that screwed their computer and I lost the remortgage.

Can i tell them I am renting their house? and now living somewhere else? the property is worth 140k and current mortgage is 60k. I want to remortgage to 100000. So equity is fine. Remortgaging to a separate lender involves a repayment charge and solicitors/valuation fees. I would rather remortgage with the current lender, Halifax. Rates are good and I want to clear some debts. Advice needed please!

Thanks

Barry :A

AuntyJean

You need to get a Buy To Let mortgage as opposed to a standard mortgage.

Standard Life have a 5yr fixed with a LTV up to 75% at 4.79%, but I am told this is up to a maximum of £84K by my advisor and the nearest is 4.99% for £100K.

Others on this forum will post later I am sure about the reprocussions of 'fibbing' to your mortgage lender.

You should also be aware that it will invalidate any insurance policies you may have.

herbiesjp

Best bet is to do BTL as the property is let out - you would need to tell your current lender that it is let out.

They can give consent to let, but then they would be able to tell your what fee would be applicable and what rates would be available.