AIBU to ask for mortgage advice

[kitkatsky]

Last year I purchased my first flat after a super long buying process- almost a year from start to finish with no chain either side. During that time I met someone and we have now decided to move in together. His house is far bigger and better, so mine is the one to deal with. Initially we decided the best thing was to rent it out, since this meant I wouldn’t lose money on it and it would still be there if things didn’t work out, but my lender has just told me they no longer offer buy to let mortgages so if I want to do this, I’ll have to pay early repayment charges and get another mortgage elsewhere- this is going to cost around 4K. So now I’m wondering if it would be better to sell it, but does this still leave me liable for early repayment charges since I wouldn’t be transferring it elsewhere?

As you would have to pay an ERC to change to a buy to let then I assume you have a fixed rate mortgage in which case you probably will have to pay the ERC if you sell. Check your mortgage documents, they will tell you how much it will cost you.

Ask them when your fixed rate is up - if it’s fairly soon it’d be better to just wait it out.

You will be liable for ERC whatever you do.

Pay it off, sell it, transfer mortgage to another lender - you will still be redeeming the mortgage with your current lender which is why you have the charges.

Just to be clear though - have you asked about Permission to Let? A lot of lenders will allow this as a short term solution to this sort of thing - you don’t have to change the rate or anything. With my lender it’s a short form, it’s assessed and if accepted then a declaration to be signed. I think it’s reviewed annually so that would potentially take you to the end of your fixed rate.