What type of mortgage do we need

desperado1_2

My father passed away recently leaving his house to my brother and myself.
I want to sell it as I want closure but my brother feels that the house will sell for a lot less than lastyear.

He is looking to get a mortgage for my share of the house value, and then he was going to rent it out for a couple of years.

Can i ask what type of mortgage does he need ie Buy to Let or can he get any mortgage ? and what does he need to do if he then rents it out.

Any help would be grateful

Thanks

_Andy_

If his intention is to rent it out then yes he'll need a buy to let mortgage. Broadly speaking the rental income needs to be at least 120% of the mortgage payment (based on interest only).

desperado1_2

thank you for your response.Is there a lot of difference between a normal mortgage and a buytolet mortgagethanks againnb he is looking for a mortgage of £90K and rental should be around £800 pcm

_Andy_

The rental should be fine.

The main difference is the interest rates will be a bit higher - if you have a look at a site like www.moneyfacts.co.uk you'll be able to get an idea of what kind of rates are available.

Conrad

Something to be aware of is where lenders remortgage criteria states an existing mortgage has to be in place. I've come accross situations where a lender / broker arranged a remortgage using the remortgage rates and fee scales only to then at the last minute realise remo criteria did not apply as no existing mortgage was present.