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flb

Can a mortgage be changed to BTL?

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I bought my house about 6 months ago and, after about 20k stuck in renovating and furniture and whatever, it looks fine. Its price has grown by about 5%, or at least that's what the EA said.

 

However, I'm now looking at possibly moving (significantly better paid job offers elsewhere) and I don't want to sell the house (now that we made it just the way we wanted it to be, it would be quite silly). Instead, I'm thinking of renting it out - and this is the "problem". 

I'm on a regular mortgage (so, not BTL) and I understand that I'm not supposed to rent it out. I paid a 15% deposit, whereas the minimum for BTL was 25%. I can afford to pay the difference to 25%, but I'm not sure whether that's possible (as in, whether the bank would agree to that). Is that possible? If so, are there any penalties? Where could I find some more information regarding this?

I can sell, I'd probably make a (small) profit, but I really don't want to - it took us 2+ years to find a decent house on the market...

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I'd say the EA is probably being ultra conservative, they usually are. If you've gone full on magnolia walls, twigs in vases and pictures on the walls of stones balanced on top of each other then you would expect that over a 6 month period MINIMUM 40% growth! Sounds like the EA is taking you for a ride and trying to get easy commission. I'd tread carefully and get a second opinion

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3 minutes ago, Beary McBearface said:

Not entirely sure as to how this is going to impact either house prices or the economy. Try the appropriate sub-forum perhaps?

it'll add money to the economy somehow, any time theres a house and an entrepreneur involved, we all get richer or somesuch

 

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So you're planning on returning? And renting at the new location? Fair enough. Just to warn you that your post is a red rag to a bull around here, so don't be surprised if you meet some hostility.

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39 minutes ago, tomandlu said:

So you're planning on returning? And renting at the new location? Fair enough. Just to warn you that your post is a red rag to a bull around here, so don't be surprised if you meet some hostility.

Yes, of course - that's why I don't want to sell.

The plan is to rent this house to someone else and rent something near work (if I take the offer).

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1 hour ago, Beary McBearface said:

Not entirely sure as to how this is going to impact either house prices or the economy. Try the appropriate sub-forum perhaps?

 

 

I was reading two different subforums in different tabs, posted from my mobile and didn't notice I was in the wrong tab.

 

My mistake.

Edited by flb

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When I last applied for a mortgage they said that it couldn't be rented out until we had been there a year. Not sure why they said this as we didn't ask anything along those lines but it stuck in my memory

Have a talk to your bank they may have a similar policy 

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Just now, Flopsy said:

When I last applied for a mortgage they said that it couldn't be rented out until we had been there a year. Not sure why they said this as we didn't ask anything along those lines but it stuck in my memory

Have a talk to your bank they may have a similar policy 

I'll check with the bank.

I thought some of the people here might have done the same thing and would point me to some resource somewhere, but I guess the bank could clarify this.

Thanks.

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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