Posted on 27 January 2010 by David
I am planning on buying my council flat and living in it for a short while on a Fixed rate mortgage, I then plan to let the property. Will I have to change my mortgage to a buy to let mortgage or can it run on a standard mortgage? It will remain my only property.
The answer to your question lies with choosing the right lender at the outset. Choose the wrong lender and you could find yourself in default of the mortgage conditions and facing possible repossession.
In all likelihood, the lender will agree to your application for consent to let the property and either increase the interest rate on your existing mortgage or switch you to a Buy to Let mortgage. You will need to allow for this when calculating whether your anticipated rental income covers the mortgage payments and other incidental outgoings such as maintenance and ground rent.
I suggest that you seek independent mortgage advice about your situation as soon as possible.
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