Converting residential mortgage to buy to let
Answered on 17 August 2017 by Nick Morrey
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 a second 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.
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