Converting to a Buy-To-Let mortgage

[anxious_ant]

In about 3 months time we plan to let a property out.
Current mortgage is with Santander, deal expires November 2022. LTV is around 39%.
We are living in the property but would be moving to another property which has mortgage paid off.
Ideally we would like to borrow a bit more whilst converting to BTL to cover renovation costs.
We have pretty much secured tenants and agreed rent etc.

Is this something we should speak to a mortgage advisor for assistance?
I've never spoken to mortgage advisors before, only one if from my local bank many years ago.
Did a quick Google and there are so many options out there, and not sure if there is any we should be looking out for,

Finally, when should we convert the mortgage? Does it have to be the exact same day we move out or when the tenants move in?

First time doing this so would appreciate some advice/guidance,plus anything to be aware of.

edit: Came across this fee-free mortgage broker (https://yescandomoney.com/mortgages/) which seems pretty good. Nice reviews on TripAdvisor too. Might be a bit cynical but wondering what's the catch?

edit 2 : It would be great if someone went through similar process (converting to BTL and borrowing more) could offer some advice.

Edited by anxious_ant on Monday 4th April 21:15

[fat80b]

Santander might give you a consent to let but TMW are an option for a normal BTL mortgage

TMW - the mortgage works. They have some calculators on the website

[996Type]

If you contact Santander, they may have the option for you to pay a small fee to convert the residential mortgage to a BTL one.

You can then determine what to do at renewal time, if the rate is attractive.

You also need to obtain landlords building insurance possibly as a requirement of the BTL request.

I would check with a mortgage advisor though around your specific case, they may have better options for you.

[anxious_ant]

fat80b said:

Santander might give you a consent to let but TMW are an option for a normal BTL mortgage

TMW - the mortgage works. They have some calculators on the website

Cheers, I will give TMW a go. I did some quick research and Santander apparently doesn't offer BTL mortgages.

[anxious_ant]

996Type said:

If you contact Santander, they may have the option for you to pay a small fee to convert the residential mortgage to a BTL one.

You can then determine what to do at renewal time, if the rate is attractive.

You also need to obtain landlords building insurance possibly as a requirement of the BTL request.

I would check with a mortgage advisor though around your specific case, they may have better options for you.

Cheers.
I know Santander have an application process for consent to rent but this doesn't suit our purpose. I will contact Santander but it is not easy to actually talk to someone for advice.

Renewal time is in November 22 and tenants should be moving in early June 22 so don't think the timing will align.

Edited by anxious_ant on Monday 4th April 21:16

[Sarnie]

Santander may provide Consent to Let, but if they did, they wouldn't lend additional funds.

If the current property is your Residential property then what you actually need is a Let-To-Buy mortgage, not a Buy-To-Let.

There are plenty of cheaper alternatives to TMW, depending on your circumstances and requirements.

[anxious_ant]

Sarnie said:

Santander may provide Consent to Let, but if they did, they wouldn't lend additional funds.

If the current property is your Residential property then what you actually need is a Let-To-Buy mortgage, not a Buy-To-Let.

There are plenty of cheaper alternatives to TMW, depending on your circumstances and requirements.

From research Consent to Let is not suitable for what we are looking for. It's short term and would be a hassle once renewal comes in November.

Thank you for the clarification about BTL/LTB mortgage. I didn't realise there is once called Let-to-Buy. I won't be having 2 mortgages though, purely need to convert current mortgage into a BTL mortgage, as I will be letting out current property and moving into a mortgage free new property.

Does sound like I need a mortgage advisor, it's just choosing the right ones. So many out there many offering no fees option.
Hopefully someone can recommend good mortgage advisor for my circumstance.

Edited by anxious_ant on Tuesday 5th April 07:17

[Mabbs9]

anxious_ant said:

From research Consent to Let is not suitable for what we are looking for. It's short term and would be a hassle once renewal comes in November.

Thank you for the clarification about BTL/LTB mortgage. I didn't realise there is once called Let-to-Buy. I won't be having 2 mortgages though, purely need to convert current mortgage into a BTL mortgage, as I will be letting out current property and moving into a mortgage free new property.

Does sound like I need a mortgage advisor, it's just choosing the right ones. So many out there many offering no fees option.
Hopefully someone can recommend good mortgage advisor for my circumstance.

Edited by anxious_ant on Tuesday 5th April 07:17

Sarnie, who replied to you just now, is a well respected mortgage broker. Why not try a more formal approach and see if it's useful?

[N111BJG]

anxious_ant said:

Cheers, I will give TMW a go. I did some quick research and Santander apparently doesn't offer BTL mortgages.

I have a Santander BTL mortgage that commenced in September 2021, it might be a product available only via brokers.

[Sarnie]

anxious_ant said:

From research Consent to Let is not suitable for what we are looking for. It's short term and would be a hassle once renewal comes in November.

Thank you for the clarification about BTL/LTB mortgage. I didn't realise there is once called Let-to-Buy. I won't be having 2 mortgages though, purely need to convert current mortgage into a BTL mortgage, as I will be letting out current property and moving into a mortgage free new property.

Does sound like I need a mortgage advisor, it's just choosing the right ones. So many out there many offering no fees option.
Hopefully someone can recommend good mortgage advisor for my circumstance.

Edited by anxious_ant on Tuesday 5th April 07:17

I didn't say that you needed two mortgages, LTB is reflective of the fact that you are letting out a property you currently already own rather than buying a property that you don't own, to let out. The two fall under different regulation and have differing criteria.

[Sarnie]

N111BJG said:

I have a Santander BTL mortgage that commenced in September 2021, it might be a product available only via brokers.

Correct, Santander BTL's are only available through brokers.

[anxious_ant]

Mabbs9 said:

Sarnie, who replied to you just now, is a well respected mortgage broker. Why not try a more formal approach and see if it's useful?

Cheers! Apologies I didn’t realise Sarnie is a mortgage broker.

[anxious_ant]

Sarnie said:

I didn't say that you needed two mortgages, LTB is reflective of the fact that you are letting out a property you currently already own rather than buying a property that you don't own, to let out. The two fall under different regulation and have differing criteria.

Many thanks for the advice. I think I definitely need some specialist advice. Do you mind if I PM you? Happy to pay for your services!

[Sarnie]

anxious_ant said:

Many thanks for the advice. I think I definitely need some specialist advice. Do you mind if I PM you? Happy to pay for your services!

Of course, always happy to chat if you want to drop me a mail or give me a call

[anxious_ant]

Sarnie said:

Of course, always happy to chat if you want to drop me a mail or give me a call

Cheers PMed you.

[Sarnie]

OP, you might want to check your Outlook email address, it's bouncing back...