Can you change your residential mortgage to a buy to let?
Yes, you can change your residential mortgage to a buy to let mortgage. You may want to consider getting mortgage advice from a buy to let mortgage broker.
Remortgaging to a buy to let mortgage is a more common thing than you may imagine.
There are several reasons why you may want to remortgage your residential mortgage to a buy to let mortgage. This could be because you have moved out of the country and you want to earn some income for the property, it could also be because you have more than one property on a residential mortgage and want to earn money from one of those properties.
You may be able to switch from a residential mortgage to a buy to let mortgage with your current mortgage lender but not all mortgage lenders may let you do this and may decline your request.
This option may also not be the best available option for you and you may want to speak to a buy to let mortgage broker who can evaluate which buy to let mortgage lenders will be willing to remortgage you to a buy to let mortgage.
When considering if to remortgage to a buy to let mortgage you should take into consideration the early repayment charges that you may be due.
How to remortgage to a buy to let
To remortgage your current propertty to a buy tolet you may want to speak to a buy to let mortgage broker who may be able to advice you on your buy to let mortgage options.
Going to your mortgage lender may seem the easiest option but you will likely miss out on thousands of otther mortgage products that could potentially be more suitable to you.
The buy to let mortgage lender will likely assess your current mortgage affordability to see if you are eligible for a buy to let mortgage.
This will do with how much equity you have in the property (This determines the mortgage lenders loan to value), If you already have tenants lined up for your residential property and how much you could charge in rental payments per month.
Let to buy mortgages
Some mortgage lenders may also allow you to switch your current mortgage to a buy to let mortgage which is funded by the rental income gained from the tenants. The mortgage lender will then offer you a residential mortgage on another property.
Let to buy mortgages are not offered by all mortgage lenders and so you should check with your current mortgage lender to see if they currently offer this.
Let to buy mortgages may be a good option if property prices have fallen and you want to buy a new home but done want to make a loss on your current home or you can’t seem to find a buyer for your current home.
You don’t have to use a let to buy mortgage you can simply remortgage to a buy to let and get a new residential mortgage.
Can you remortgage to a buy to let mortgage with bad credit?
You may be able to remortgage to a buy to let mortgage with bad credit but this will depend heavily on the mortgage lender.
Bad credit includes:
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.