Posted on 17 August 2014 by Keith
I am having to work away from home for an extended period (6-12months). My family will stay in the family home (value £520,000) and I plan to come home at weekends. As my employer gives no help for relocation costs I am considering buying a 2nd property which would become a rental investment when I return home. Can I buy on a residential mortgage and convert to buy to let later? Is there an alternative funding source? There is some equity in the family home but the company no longer fund new loans. My wife also has a second property which is rented out, with no mortgage, valued at about £200,000 she would potentially part mortgage that property to raise funding.
Subject to knowing the exact figures involved, there's no real reason why you shouldn't be able to purchase asecond property to live in while you are working away from your main home. We can certainly look to raise a mortgage against your wife's rental property to towards the new one, which should be fairly straightforward.
The funds can then be used as the deposit for the property you will live in while working away, which can we can apply for a residential mortgage on. Once you have no further need to live in it, then you can apply to the lender for consent to let, or we can remortgage away on a Buy To Let basis to an alternative lender.
If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you an idea of how we can help.
More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.