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You may convert your existing home into a buy to let mortgage deal, instead of getting the BTL for another property elsewhere. Perhaps you are not content with living in your existing home for the rest of your life and you have just found the ideal home elsewhere. Your house is probably too small for your family which has gotten bigger over the years. If you think you can get tenants on your existing property, a let to buy (as it is sometimes called) may be the solution for you. But just like a BTL, there are a number of things that you need to pay attention to. Getting BTL in the post credit crunch period means that it is difficult to secure more than 80% from the lender. The buy to let mortgage rate may be higher without fulfilling that condition, if at all you can find a lender that will not impose it. Getting Equity and Rental Rates By remortgaging you can release equity from your existing property, provided you do not surpass 80% of its value, and this capital can be used for new property you are set to acquire. The increased mortgage needs to be factored in when calculating the amount you need for the new property. Just like with a regular BTL, it is important that you do some research to determine if there is demand for the property and that you will get tenants. You may have lived there long enough as an owner, that you may be oblivious of the real prevailing market rates. Lenders will want to know that you can raise the monthly rent of about 125% of the repayments. This is the buy to let mortgage rate that most lenders expect from you. The 125% is believed to be the ideal amount you should raise in rent, to cover for the repayments as well as to cover the maintenance costs. But just like a regular BTL, you need to pay attention to maintenance costs and ensure that you are realistic about your expectations. The extra 25% is just a standard and you should have worked out how much you need in maintenance costs every month. Consent to Leave If you still feel reluctant to leave but you know that it is inevitable, you may go for the temporary option, which is consent to leave. Consent to leave is for those who are moving to a new location, but there is still the possibility of them moving back. It may have a fee and possibly its own interest rates. Talk to your broker to ensure that you get the best buy to let mortgage. Most lending companies will go through brokers for such products. You also need to research and ensure you get everything in order. Author is associated with a Mortgage Broker Firm in London. They are able to arrange immediate fund to buy property; Here, He keen to provide detailed information on buy to let remortgage along with buy to let mortgage calculator to choose best mortgage provider that suits your need.
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buy to let remortgage, buy to let mortgage calculator,
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