Changing current mortgage to buy to let

Posted on 7 February 2010 by Adele.Andrews


I currently own a two bed flat and I am looking to buy a home with my partner. Is it possible to change my current mortgage to a buy to let? I have about 30,000 equity in my current flat, is it possible to release if I change to buy to let?

Thanks

Adele

It may well be possible to change your current mortgage to a buy to let.  Whether you can do this with your existing lender will depend on if they offer Buy to Let mortgages, if you are still within any Early repayment Charge period, the anticipated rental income and the value of your flat.  It is very possible you will have to consider remortgaging to a new lender.

As far as releasing the equity from your flat is concerned, don't expect to be able to release it all.  Buy to let mortgages tend to require a greater deposit than residential mortgages and there are very few available where less than 30% is required. 

I recommend that you speak to an independent mortgage adviser about your circumstances as soon as possible.

Peter

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