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You have to change your standard residential mortgage to the buy to let if you chose to rent the property to someone else. It is necessary to take permission from the lender in the form of converting residential mortgage to buy to let before putting up for rent. You have to go by the books, if you don’t change the agreement you might end up risking the invalidation of mortgage and may have to pay the lump sum loan in one go. If you are confused about the agreement, you can consult a broker and discuss the suitable fixed rates and fees.
Situations that require to switch mortgage
There are generally three types of scenarios in which you will have to switch the type of mortgage;
How to let out mortgaged house
Is your house mortgaged? Do you plan to put the property for rent for a certain period? To take this step it is very important to take the consensus of the mortgagee and get the converting residential mortgage to buy to let agreement signed. So you begin this new journey with clear intentions with all parties involved.
This agreement may be temporary, but it saves you from asking for several in a short span. There are chances that lenders might increase the interest rate as they will see that more risk is involved in letting the property to a third party. When the letting period finishes and you plan to extend the letting period you will have to remortgage to “buy to let” mortgage.
Changing the renting/mortgage agreements
Finding two good deals at the same time that are each right for you and work together might be a challenge if you go it alone. A mortgage broker can help you make sense of let-to-buy.
Does your property you own is far from your office? Do you want to rent your owned property and move to a rented house near your office? Whatever the situation is if you let out your mortgaged property then converting residential mortgage to buy to let is what you will need. You can apply for the following two types of mortgage based on your needs;