Posted on 12 January 2010 by Claire
Hi, I own a property, which is currently tenanted (with agreement from the mortgage provider to rent out). A standard residential mortgage is affordable on my current salary (I have no other property to pay for , as the costs are met by my partner). I am looking to re-mortgage, as my fixed deal has come to an end. Would I have to take a Buy-to-Let mortgage, or can I apply for a standard residential mortgage. When looking at mortgage deals a Buy-to-Let mortgage does not appear to be available based upon the current LTV (79%) and re-mortgage payments.
You have correctly identified the lack of any Buy to Let mortgage deals for LTVs above 75% and any new lender would definitely not want to let you have a residential mortgage.
This leaves you with your current lender and it is worth asking them if they have any retention products available now your fixed rate is coming to an end. Some lenders advertise these quite openly, whilst others keep there availability hidden until a specific request is made.
I recommend that you speak to an Independent Financial Adviser about your situation and in particular whether it is worth staying on your Lender's standard variable rate until the equity in your property has increased.
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