Mortgage Question
Discussion
I have a mortgage on my current property which i have around 60% ltv in.
I am looking at buying another property to move into whilst retaining my existing property. The new property is a repo, so i can;t wait and sell my current property. I don;t need to remortgage my existing property, which i will either sell, or possibly rent out if not.
I know if i rent it out, i need to inform the lender, but will i need to re-mortgage, and get a buy to let, or can i just have 2 "standard" mortages?
Any advice appreciated.
Cheers
Andy
I am looking at buying another property to move into whilst retaining my existing property. The new property is a repo, so i can;t wait and sell my current property. I don;t need to remortgage my existing property, which i will either sell, or possibly rent out if not.
I know if i rent it out, i need to inform the lender, but will i need to re-mortgage, and get a buy to let, or can i just have 2 "standard" mortages?
Any advice appreciated.
Cheers
Andy
I think that the short answer is to find an Independant Financial Advisor. They'll be able to find the best mortgage for your needs.
In the past, we have bought properties to renovate, so not rented out, and have obtained an interest only "standard" mortgage for the duration of the renovation and sale. Since getting in BTL, we have always taken out specific BTL mortgages.
Whatever happens, you would have to inform the mortgage lender of the second house that you are letting it, as it's a normal clause that they need to know if the porperty will be rented out. Obviously a BTL mortgage is specifically for this purpose!!
Oh, and with regard to the LTV in your currently property, will you need to release equity for the deposit on the new purchase, or do you have the money in savings to use on the purchase?
In the past, we have bought properties to renovate, so not rented out, and have obtained an interest only "standard" mortgage for the duration of the renovation and sale. Since getting in BTL, we have always taken out specific BTL mortgages.
Whatever happens, you would have to inform the mortgage lender of the second house that you are letting it, as it's a normal clause that they need to know if the porperty will be rented out. Obviously a BTL mortgage is specifically for this purpose!!
Oh, and with regard to the LTV in your currently property, will you need to release equity for the deposit on the new purchase, or do you have the money in savings to use on the purchase?
If you rent it out, you will need to get permission to let from your current lender. Some lender#s will do this as a matter of course, others won't. If they won't do that then you will have to remrotgage to a btl.
Check this for yourself, becuase some brokers will simply sell you a btl mortgage as well as a new resi deal.
If you do not get PTL and do not remortgage the existing property to a btl, you will have to be in a position to service both mortgages from your own income.
Bear in mind that if you take out a new BTL mortgage you might want to choose a scheme that has no tie ins. That way, should you decide to get rid of it at somepoint you won'tbe charged a fee by the lender for doing so.
Check this for yourself, becuase some brokers will simply sell you a btl mortgage as well as a new resi deal.
If you do not get PTL and do not remortgage the existing property to a btl, you will have to be in a position to service both mortgages from your own income.
Bear in mind that if you take out a new BTL mortgage you might want to choose a scheme that has no tie ins. That way, should you decide to get rid of it at somepoint you won'tbe charged a fee by the lender for doing so.
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