Changing Mortgage To Buy To Let
Our Buy to Let Mortgage Service
Why choose us?
Fair Mortgages can provide you with a first class service if you are looking for buy to let mortgage advice.
Special features of what we offer include:
- Whole of market broker - we deal with most UK buy to let lenders
- Rates - Access to leading buy to let market rates
- Exclusives - Access to exclusive buy to let mortgage deals not available on high street
- Our BTL Experise - Expert help whether you are a first time investor or full time landlord
- Experienced BTL Investor? - Have a complex buy to let or have a portfolio of 5+ properties? - speak to us
To investigate your buy to let mortgage options call our specialist team on 0117 403 4474 or fill in our call back form.
"The essence of the Fair Mortgages buy to let service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support."
As your buy to let mortgage is such an important transaction, good advice is imperative.
Changing Mortgage To Buy To Let
There are some circumstances where you may want to change your existing mortgage to a buy to let. There are many reasons when someone might want to move out of their home but keep ownership of it by letting it out; for instance if you want to move for a few years for work or you want to move in with a partner, or to perhaps live overseas.
Consent to Let
If your existing mortgage is still in its initial period, it may be worth first contacting your lender and seeing if it is possible to a ‘consent to let’ agreement, not all lenders offer this but a few do. A consent to let agreement will allow you to let the property out with your existing residential mortgage until the end of its initial period. There are costs involved with getting consent to let but it may work out cheaper than remortgaging in the midterm. Consent to let agreements tend be assessed on a case by case basis where the borrower is required to show that the request to let the property out is due to circumstance and the property was not purchased with the view of letting it out.
If your lender does not grant consent to let agreements or your current mortgage has come to the end of its initial period then you will need to remortgage the property to a buy to let. There are some key differences between residential mortgages and buy to let products which you may need to be aware of.
Affordability: Unlike residential mortgages where affordability is calculated on the borrower’s income and outgoings, buy to lets often use the potential rental yield of the property, a common requirement is that the monthly rental income of the property would be at least 125% if what your monthly mortgage payments would be, based upon a professional rental estimate. This means that your application could be rejected if you do not own enough equity in the property to keep your mortgage payments low enough.
Deposit: While a residential mortgage can be taken out with a relatively low deposit, minimum deposits for buy to let products are often higher, with lenders often requiring a minimum deposit of25%, although some lenders may accept lower deposits. This means that if you do not currently have enough equity in the property then you will be required to pay the difference.
As lenders view buy to let mortgages being of a higher risk the arrangement fees and interest rates offered can be higher than residential mortgages, therefore you may find that your monthly mortgage payments increase.
If you are looking for a buy to let mortgage, you may benefit from using an independent mortgage adviser to help you find the right choice, independent mortgage advisers who offer a whole of market service can give impartial advice and use their expertise to search across a range of different lenders to try and find the best deals on the behalf of their clients.
To find out if Fair Mortgages could help you fill in our online contact form to request a call back, for a free initial consultation. Attentively you can call directly on: 0117 403 4474