Do I need a Buy to Let?

aks120

Hi all - this is my first post so please be gentle :rotfl:

I currently have a buy-to-let mortgage with Northern Rock which is due to end in Nov. I lived in the house before I rented so technically I did not 'buy to let' - my work circumstances mean I have to be away from the house for a few years but I fully inted to move back in to it as my home.

Anyway I was just curious as to whether I could get a normal remortgage or do I have to get a buy to let even though that was not my intention when I bought and it is not my long term intention! I think I know the answer but it is slightly annoying to get higher interest rates and the requirement for a high LTV percentage when it is my only house. I currently live in rented accom.

Anyway - any advise greatfully recieved

Thanks aks120

Gorgeous_George

You need the lender's permission to let the property whatever mortgage product you choose.

GG

rzr101

aks120 wrote: »

Hi all - this is my first post so please be gentle :rotfl:

I currently have a buy-to-let mortgage with Northern Rock which is due to end in Nov. I lived in the house before I rented so technically I did not 'buy to let' - my work circumstances mean I have to be away from the house for a few years but I fully inted to move back in to it as my home.

Anyway I was just curious as to whether I could get a normal remortgage or do I have to get a buy to let even though that was not my intention when I bought and it is not my long term intention! I think I know the answer but it is slightly annoying to get higher interest rates and the requirement for a high LTV percentage when it is my only house. I currently live in rented accom.

Anyway - any advise greatfully recieved

Thanks aks120

You can do either depending on how the application is processed. A good broker will be able to do this for you.

Re informing the lender (a usual requirement) that a house is let, I wouldn't worry too much - if they found out (how???) then they would never formally recognise this as THIS MAKES THE PROPERTY HARDER TO REPOSSES IN THE EVENT OF ANY DEFAULT. speak to a solicitor if you dont believe me.

4433jake

hi

does anyone know the costs involved in agreeing consent to let - i am also in the same situation comparing buy to let vs residential remortgage then consent to let. I have a mortgagge offer in place with halifax but if their consent to let costs are too high then i guess BTL may be better

regards

rzr101

4433jake wrote: »

hi

does anyone know the costs involved in agreeing consent to let - i am also in the same situation comparing buy to let vs residential remortgage then consent to let. I have a mortgagge offer in place with halifax but if their consent to let costs are too high then i guess BTL may be better

regards

It doesnt cost anything unless they refuse and make u take a higher rate (BTL rates are higher). With BTL rates as they are then it is likely these would not fit, depending on your loan to value. If it is anywhere near 85% then I strongly doubt it.

Halifax should be ok with it - it normally depends on how long you are in the property (although I have known comanies do it after a month).

Gorgeous_George

They often charge an admin fee in the £100 area I think.

GG

4433jake

my ltv would be 60% on current valuation (250k) but wtih volatile house prices this could vary

lic

If I were you OP, I would ensure that I had a BTL mortgage, or permission from my lender to rent. There is normally an admin fee for this, and the interest rate will go up by at least 1% over the normal residential mortgage. If you don't tell them, they might foreclose on the mortgage.
Insurance is an important aspect, as if you have landlord insurance it gives you PL protection. If you do not have the correct insurance you are not insured!
Take a trip to WH Smith and get a tenancy agreement package, it costs about £10. Use one of these rather than using a letting agent, and advertise at work or in you local free paper.
Good luck.

taketwo

I have two Mortgages with the Nationwide, one for my old house that I let out,and one for a house I bought with my husband. This has been the case for 5 years, I have asked and received permission to let out the house every three years and they have charged me nothing!

aks120

Thanks for the replies - I did inform Northern Rock when I originally let the house out a couple of years ago and it cost me 250 pounds but when I re-emortgaged they put me on their buy to let product. I just thought that as I had lived in the property before I let and I intend to live in it in a couple of years that I may be able to go for a normal remortage deal - of course telling the lender the full facts.

It looks like I am stuck with a BTL product - if I can get one!