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Do I need to change the mortgage type when I move out of my flat?
windowwindow
Posts: 41 Forumite
Hi,
Just wondering about any issues I might have if I moved in with my boyfriend and let out my flat...
I have a mortgage with C&G - would they want to change it to a BTL mortgage? If so would I need to prove I would get 100% of the mortgage in rental income? I think I'd get 85-90%, and I'd still need to contribute a bit to the cost of the mortgage and pay the service charge.
If I don't fit the criteria I think I'd need to wait until my mortgage is up for revewal, I'm not paying the repayment fees!
Any thing else I should think about?
I'm aware of the CGT implications.
Thanks,
W
Just wondering about any issues I might have if I moved in with my boyfriend and let out my flat...
I have a mortgage with C&G - would they want to change it to a BTL mortgage? If so would I need to prove I would get 100% of the mortgage in rental income? I think I'd get 85-90%, and I'd still need to contribute a bit to the cost of the mortgage and pay the service charge.
If I don't fit the criteria I think I'd need to wait until my mortgage is up for revewal, I'm not paying the repayment fees!
Any thing else I should think about?
I'm aware of the CGT implications.
Thanks,
W
0
Comments
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Hi W to answer some of your questions
you MUST tell your lender you are letting your proprty and they will decide if you require a BTL motgage as some let you keep the residential one for a time (3 years).
The general rule of thumb for rental income vs repayments is rental income should be 130% of the mortgage or more to cover voids and repairs etc
there are no CGT issues before you sell but there are income tax issues.
Hope this helps a littleDebts as of 01/june/08
[strike]Dad 15,500[/strike] [strike]11,000[/strike] [STRIKE]9000[/STRIKE]
[strike]Friend[/strike] [STRIKE]5000[/STRIKE]
[strike]Other 1000[/strike] 0.0
Egg [strike]7633.14[/strike] [strike]6000@0%[/strike]:T0
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