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can i rent?
b45ter
Posts: 10 Forumite
I am due to remortgage my house and have heard that a buy to let mortgage is cheaper provinding the rental income is going to cover the cost. Can i get a buy to let mortgage and then rent my house to me? sounds crazy but could save me thousands. what are the rules and regs on renting out?
many thanks
many thanks
0
Comments
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Buy to let mortgages are not cheaper than residential ones and you can't let your house to yourself. In most cases you can't let to a family member. The idea is a bit of a non starter, particularly if you factor in added landlord costs like gas certificates, more expensive building insurance etc.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Who told you a buy to let mortgage is cheaper than a residential mortgage?!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.0 -
cant remember where i heard it (off tv somewhere) where the lady said its easier to get a mortgage if the rental costs can cover the mortgage.
it makes no difference now as logistically it cant be done.
thank you for your advice and knowledge silvercar0 -
cant remember where i heard it (off tv somewhere) where the lady said its easier to get a mortgage if the rental costs can cover the mortgage.
it makes no difference now as logistically it cant be done.
thank you for your advice and knowledge silvercar
A BTL mortgage is based on the rental income, so provided the rental income is greater than the mortgage payments by an extra 25% or similar then the mortgage should be obtainable (though the landlord would have to have a reasonable credit rating and a deposit for the remainder of the price).
A residential mortgage is of course based on affordability or income.
So there may be cases where the potential rental income would make a mortgage obtainable, that doesn't automatically mean you could get one though!
The actual mortgage rates for BTL are slightly higher rates in general than residential mortgages.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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