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Has anyone had any dealings with them. We have a flat that we are not going to be living in so are going to rent it out and as some one let slip to the bank they now no this so need to change the mortgage to buy to rent. I know nothing about finance or percentage rates just the figure at the bottom that needs to be paid. So in general are buy to rent mortgages much more expensive or is it time to try and sell.
My brother needs to rent his flat out, he got told their payments were going up.
However they have just decided not to tell bank and just rent it out anyway. I'm not sure of any consequences but fairly sure they won't be amused. He is getting all the other legal bits done on boiler etc.
I'm staying out of it his wife is a cow it's all her idea.
However they have just decided not to tell bank and just rent it out anyway. I'm not sure of any consequences but fairly sure they won't be amused. He is getting all the other legal bits done on boiler etc.
Conning the banks out of money for personal profit is simply immoral.
Well would have just caryed on as it is but like I said the bank knows. We could probably manage the mortgage if it went up by no more than £ 100. month more than that we are ****ed.
even if you don't tell the bank/owner you should inform your insurance company
Talk to a bank and find out?
You do also realise that you should be paying tax on any income?
Oh the tax I know about it's all above board on that score.
you will have to check but i believe that there are implications for tenants if you are on the wrong mortgage. If there are and i as a tenant suffer, i would quite happily take you to court for costs.
just saying.
most mortgage companies charge £1000 ish to set up mortgage. with a buy to let you require a higher value rental to repayment to the tune of 125%i.e every £100 repayment=£125rental, and yes you get a crap interest rate
We have a house on a buy to let mortgage, I don't know all the details (my other half is the brains of the operation). Differences I know about buy to let mortgages. They don't take into account any other borrowing / lending / income etc. All they seemed to be interested in was can you rent it out for 125% of the mortgage payment? The deposit to buy the property is generally much higher than a normal mortgage. (I guess this won't matter to you as you already own it?)
Basically, as long as you can rent it out for more than the mortgage is costing you it shouldn't be a problem. (I think).
rental yield will normally need to cover 125% of the mortgage cost, or the mortgage worked out on 6% (so take loan, x 0.06 / 12) - whichever higher.
rates may not be too bad, expect to pay up towards 2k in fees though, quite possibly more. don;lt forget grief factor if you get horrid tenants.
or you can't get tenants! Simon Blyth est. agents are useless with ours at the minute, too busy with people on holiday! ffs.don;lt forget grief factor if you get horrid tenants.
I am just changing a mortgage in my name with the Halifax to a Consent to Let.
They value it at £77,000 and I owe £47,000.
They are doing me a rate of 6.09% till 2015 which sounds high but there are no other costs at all.
Hope that helps.
Conning the banks out of money for personal profit is simply immoral.
😆
It's valued at £115000 and we still owe about £43000 ish. It's next door to the flat we live in. We want to do it all above board they are renting for £450 In the area at the moment, the mortgage is a lot les than that as it is just now.
Years ago when we moved out of our last place and rented it, we didn't have to remortgage or pay any fees, but they bumped the rate up, no other hassles.
you will have to check but i believe that there are implications for tenants if you are on the wrong mortgage. If there are and i as a tenant suffer, i would quite happily take you to court for costs.
Out of interest, how do you envisage yourself "suffering" as a tenant with a landlord "on the wrong mortgage"?
You need to balance the amount of equity you leave in the flat against how much they will lend to minimise your tax bill. In simple terms, if you have a mortgage on the place you live, then take as much equity as you can out of the rental property as you can to pay more off your own mortgage. That increases the finance fee on the rental property which you offset against your profits from the rent. Good luck!
you need to tell your mortgage company...this will increase the amount the pay...they might even be cheeky and ask you to pay for administration cost to do this (mine did). It's not significantly more expensive (depends on mortgage company).
You will also need to change your home insurance. If anything happens and its a tenant who caused the problem your insurance company has grounds not to pay out (if they burn your house down it could prove very expensive just to save a marginal amount per month)..
Here's the kicker - your mortgage company is noted as the other interested party on your home insurance so there's no way round it.
Maybe if its a pal you're renting to you could risk it...but if it's strangers i'd play it safe...
Out of interest, how do you envisage yourself "suffering" as a tenant with a landlord "on the wrong mortgage"?
If the bank finds you have rented it without consent, you could be in breach of your mortgage agreement and instantly have the whole loan called in, which if you haven't got funds handy, might lead to your bankruptcy, the house's repossession and the tenant being evicted at fourteen days notice rather than what is in their contract.