Buy to Let Required?

[delsol79]

Hi - I bought and lived in a property for 3.5 years and then tried to sell it last year.

A new job forced me to move away and I left the property empty on the market for 6 months and then gave up and decided to rent it. I infomed by bank I was now renting - they said I could remain on my current mortgage for a year and then would need to switch to a buy-to-let.

It is coming near to the end of this first year and worried they will now try to make me switch but some people they have told me it is not true that I have to switch so I need some advice please.

For the past 9 months the rent has not covered the mortgage so it is not an investment. With recent rate drops that may change but still would only be making about �20 a month from it so not sure if this affects things?

Any advice would be recommended. I really want to stay on current mortgage deal.

[Mr Veritas]

I don't know whether what you have been told is correct or not,sorry.
However,if your Bank has said this,then I get the feeling that they CAN do what they want regardless of what YOU want.
I think you need to speak to the Bank again and get this confirmed,and find out if there is any other way,that is more suitable for you.

[Velvetee]

There are so many people in your situation Delsol at the moment, including myself, I have two in negative equity, one has been vacant for going on 4 months and the rental income has had a shortfall of �200 plus per month for the past three years.

Not much I can do, but muddle through it and hope things improve. You will have to change to a Buy to Let mortgage, but don't feel you have to stay with the same lender. The problem is that you may not be able to remortgage at the same value, if the revaluation is now lower.

Buy to Let mortgages are always more expensive than residential ones and moreso, if you only want a repayment mortgage, as opposed to interest only.

[delsol79]

Not that you could condone this but if it comes to it I am going to say I have moved back home. Someone said if you do this for 3 months then move out again you get another year.

[redcrx]

check out some BTL mortgages (speak to an independant broker) as the rates arent always that bad.

The best rate when i was looking, last year, was natwest.

[delsol79]

My current rate has just dropped to 2.5% so it is not going to get better than that :)

I thought I had a leg to stand on as I did not buy again and only renting as it did not sell so not bought as an investment. If it comes to it I will say I am moving back in or just try to sell it.

I have heard other people being allowed to stay on their current mortgage. HSBC will have to decide whether they want some money from me or none :)

[redcrx]

i was able to stay on with my current mortgage, but if Id needed a specific BTL then natwest was best at time.

[delsol79]

OK well I will wait until March which is the end of the year and see what contact there is and go from there. Thanks for everyones input.

RedCRX - I used to be a CRX owner hence the nick :)

[redcrx]

same here! mines was a delsol too.

god i miss that car :(

[delsol79]

me too :) Loved it though was an import (SiR) and had countless issues with it. Bright green :)

[redcrx]

mine was import SiR too, with mugan extras.
nippy little thing it was, i loved it. had a few little niggles but nothing major (apart from having to get an exhaust system fabricated)
made the mistake of part exing it for a peugeot 206cc, load of rubbish!

[mandimoo]

my lender allowed me to keep my current mortgage (little wonder as they get 7.5% a month out of me), but i had to write to them and ask their permission and for a fee of �250 they gave their permission for me to let the property. it was explained to me thus.... if i neglect to pay the mortgage and there are tennants in, it complicates matters for the bank to reposses.

[delsol79]

Mandimoo - who was your lender? I have read in other places of HSBC allowing people to do it so unsure why one rule for some and another for others. Seems to depend on who yuo speak to!

CRX - No!!! I kept it real, moved to a Prelude VTi and now a Civic Type R :)

[redcrx]

the type R is a lovely looking car, but the interior was very basic i felt.

I had kids, now the owner of a c-max :(

[mandimoo]

hi, im on the cheltenham & gloucester standard variable (ouch it makes me wince every time).