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Buying a new home and switching your existing home to a buy to let

The transition from a residential mortgage to a buy-to-let mortgage is quite common. There are a variety of situations that could justify a mortgage switch like moving home or having a house that is empty with an existing residential mortgage.

If you are a homeowner with an existing mortgage for your home but would like to change to a buy-to-let then you’ll need approval by your mortgage lender. If the lender you currently have declines the remortgage option, it could be an option for you with a new lender. The penalties for early repayments, based on the term of your mortgage.

The decision to switch mortgages is based on:

The type of mortgage you currently have
What are your plans regarding the property
Your future arrangements for living
Other mortgages that you own
The terms of your current mortgage
Lender consent

How do you change your mortgage into a purchase to let

Since this is a financial decision changing mortgage types requires care and consideration. It’s not something you can be done in a hurry. Make sure to consult with a specialist for advice if you’re uncertain. Our experts are available to answer questions at any time and determine whether you’re eligible.

A mortgage for buy-to-let is different than a mortgage for residential properties. It could be beneficial to maximize the rental income, for example in a situation where it would not be an alternative. Our advisors are able to instantly look up the buy-to-let rates you’ll be eligible for and go over the different aspects with you.

If you only modify your mortgage contract with the present lender, you’ll be presented with the rates they offer. In this way, you’ll be limited to one lender. This means that you’ll be unable to have the choice of selecting the mortgage that you’re eligible to get. Our experts have access to all UK lender, meaning you’re certain to find the lowest rate possible.

Purchase a new house and converting your current home into a buy-to-let

Transferring an existing mortgage to a buy-to- let and then buying the new house is frequent. These types of mortgages are referred to as let-to-buy mortgages. Instead of selling your current property, you can rent it out.

It is also possible to remortgage your current home to finance the purchase of your new residence. The rental income you earn could be used to pay for the new mortgage for residential properties We’ve been thinking about it…

You may have overpaid for your property and tried to sell it but haven’t been able to sell at the amount you think that it is worth. The best alternative is to keep the home and switching to a buy to let mortgage, and hold off until the value grows enough to justify selling.

Some lenders are not willing to consider this type of arrangement. This is because of the magnitude of risk the lender is taking on. If a tenant fails to pay rent or you face an unanticipated repair bill for the rental, this can create financial pressure. If you’re stuck on solutions, you may want to think about a bridging loan but be sure to use it with care and only make use of it as the last option.

Making a buy-to-let mortgage and then moving to a rented home

If you have an existing residential mortgage, but you want to get rid of it and rent out a home instead there are lenders that are available. However there are lenders who will not be thrilled to offer a switch. This is due to the fact that buy-to- let mortgages are typically provided to existing homeowners who own at least a mortgage for their home.

Rents can be more expensive than a mortgage and in the event that your tenant fails on the rent payment it could cause financial problems. The lenders are aware of the risks, and therefore they may reduce the amount of rent you pay.

Finding the most affordable mortgage rate for switching

A good rate on your mortgage is essential in the event of switching mortgages. If you’re already enjoying an excellent rate, making an application to your lender for permission might be the best choice. The lender might be willing to simply transfer the mortgage rate to a different property.

If your lender doesn’t accept with you, consult an advisor to determine the mortgages and rates you’re entitled to. It’s worth checking to determine the rates you’re eligible for even if the lender does provide consent.

Advisors will also strive to ensure you will be able to maintain the current rate, particularly when rates are more expensive.