Crosswords1 min ago
Buy to Let Required?
Hi - I bought and lived in a property for 3.5 years and then tried to sell it last year.
A new job forced me to move away and I left the property empty on the market for 6 months and then gave up and decided to rent it. I infomed by bank I was now renting - they said I could remain on my current mortgage for a year and then would need to switch to a buy-to-let.
It is coming near to the end of this first year and worried they will now try to make me switch but some people they have told me it is not true that I have to switch so I need some advice please.
For the past 9 months the rent has not covered the mortgage so it is not an investment. With recent rate drops that may change but still would only be making about �20 a month from it so not sure if this affects things?
Any advice would be recommended. I really want to stay on current mortgage deal.
A new job forced me to move away and I left the property empty on the market for 6 months and then gave up and decided to rent it. I infomed by bank I was now renting - they said I could remain on my current mortgage for a year and then would need to switch to a buy-to-let.
It is coming near to the end of this first year and worried they will now try to make me switch but some people they have told me it is not true that I have to switch so I need some advice please.
For the past 9 months the rent has not covered the mortgage so it is not an investment. With recent rate drops that may change but still would only be making about �20 a month from it so not sure if this affects things?
Any advice would be recommended. I really want to stay on current mortgage deal.
Answers
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No best answer has yet been selected by delsol79. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.I don't know whether what you have been told is correct or not,sorry.
However,if your Bank has said this,then I get the feeling that they CAN do what they want regardless of what YOU want.
I think you need to speak to the Bank again and get this confirmed,and find out if there is any other way,that is more suitable for you.
However,if your Bank has said this,then I get the feeling that they CAN do what they want regardless of what YOU want.
I think you need to speak to the Bank again and get this confirmed,and find out if there is any other way,that is more suitable for you.
There are so many people in your situation Delsol at the moment, including myself, I have two in negative equity, one has been vacant for going on 4 months and the rental income has had a shortfall of �200 plus per month for the past three years.
Not much I can do, but muddle through it and hope things improve. You will have to change to a Buy to Let mortgage, but don't feel you have to stay with the same lender. The problem is that you may not be able to remortgage at the same value, if the revaluation is now lower.
Buy to Let mortgages are always more expensive than residential ones and moreso, if you only want a repayment mortgage, as opposed to interest only.
Not much I can do, but muddle through it and hope things improve. You will have to change to a Buy to Let mortgage, but don't feel you have to stay with the same lender. The problem is that you may not be able to remortgage at the same value, if the revaluation is now lower.
Buy to Let mortgages are always more expensive than residential ones and moreso, if you only want a repayment mortgage, as opposed to interest only.
My current rate has just dropped to 2.5% so it is not going to get better than that :)
I thought I had a leg to stand on as I did not buy again and only renting as it did not sell so not bought as an investment. If it comes to it I will say I am moving back in or just try to sell it.
I have heard other people being allowed to stay on their current mortgage. HSBC will have to decide whether they want some money from me or none :)
I thought I had a leg to stand on as I did not buy again and only renting as it did not sell so not bought as an investment. If it comes to it I will say I am moving back in or just try to sell it.
I have heard other people being allowed to stay on their current mortgage. HSBC will have to decide whether they want some money from me or none :)
my lender allowed me to keep my current mortgage (little wonder as they get 7.5% a month out of me), but i had to write to them and ask their permission and for a fee of �250 they gave their permission for me to let the property. it was explained to me thus.... if i neglect to pay the mortgage and there are tennants in, it complicates matters for the bank to reposses.