Letting current home

Posted on 21 March 2011 by Natalie

I have a residential mortgage with Nationwide, I need to rent the house and want a buy to let mortgage but don't know much about them. My current mortgage is fixed until 2013 & has an outstanding balance of around £116,000, however we owe the housebuilder, who gave us the deposit 2 years ago, £33,000. The house has been valued at £169,950, where do I stand? Can I switch mortgages so that I can rent my house out, pay back house builder and current mortgage provider?


You haven't said why or how long you need to rent out your property and I wonder if you just need to ask Nationwide for permission to let rather than obtain a Buy to Let mortgage. There is an Application and Guide for Permission to Let form you need to ask for and they have advised it is rare for them to refuse a legitimate request.

It is going to be difficult to arrange a Buy to Let (BTL) mortgage because the amount you need to borrow to clear your existing mortgage and the Builders deposit amounts to roughly 88% of the property's value. There are no BTL mortgages available above 85% LTV and only a few at 85%, undoubtedly these will all cost more than your existing mortgage with Nationwide.

I recommend you speak to Nationwide and seek their permission to let.


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.

You are currently offline. Some pages or content may fail to load.