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switching repayment mortgage to buy to let

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  • switching repayment mortgage to buy to let


    Im a first time buyer hoping to purchase within the next few months. I will be looking at buying a flat around £80000 In the West Midlands. I have 15% to put down.

    My question is, if my circumstances change in the future and i end up moving in with my girlfriend, and even buying another house, what are my options if i wanted to let out the flat?

    How strict are lenders when it comes to allowing this? What if i wanted to let out the flat long term? Are there any lenders less strict (can anyone suggest any?) or would i be forced to put down a large buy to let deposit when swapping mortgages (part equity?)? If rent covers the mortgage is that enough?

    Input appreciated!

    Many Thanks

    Last edited by relentless; 28-01-2011, 09:49 PM.

  • #2
    Re: switching repayment mortgage to buy to let

    Dear relentless,

    You can switch to buy to let's after your fixed period but will have to meet their requirements, i.e if at the time they want 40% deposit then you would need to make a cash payment to get to that level.

    However, you don't always need to switch to buy-to-let as they might let give you consent to let and then you can switch to interest only which would probably be much cheaper.

    As always, a financial adviser is the best person to guide you through your options. £50 spent now explaining your options could save you thousands in a couple of years to come


    • #3
      Re: switching repayment mortgage to buy to let

      Also, you will need to ask your solicitor to check the lease of any flat you intend to buy to make sure that it doesn't prohibit you letting it out to a third party.
      Some leases specify that the flat is for owner occupation only.