some mortgage advice please...what to ask for..

[timetosmile]

I'd appreciate some finance savvy advice please

We have 60% equity in our family home, but being an older house with a big rambling garden it needs some upkeep.

We may have the chance to go and work overseas (and be self sufficient while there) in a couple of years.

So are thinking of downsizing to a newer local house with a smaller garden, which we could rent out more easily (and with peace of mind re repairs etc) when the time came.

We would want to release some capital for relocation, but would aim to keep >50% equity in the new house, which would be our family home for a while.

And the rent would easily cover 125%pa a repayment mortgage.

The Co-Op, who our current residential mortgage is with, will only sanction a 12 month tenancy. I suspect renting it out longer term and not telling them could land us in a whole heap of trouble!

A buy-to-let seems wrong when we are going to be living there, maybe for 2-3years initially.

So what product do I ask for, and from whom? Will anyone on the High Street be interested, or is it a weird thing that needs to go through a broker.

Thanks fo any advice, however general.

Take a normal residential mortgage, on a 2 year deal (either fixed rate or tracker, whichever you would prefer). When your deal finishes, roll onto SVR rather than arranging a new deal. When the time comes to let it out, simply call your mortgage company and advise them you want to change to a buy to let :)

Thanks - that's what I tried to do with the Co-op, and they didn't want to play! Is that unusual? Do you think a lot of other main lenders would do it?

At this stage you don't need to really worry about potentially renting it out in a few years. All I would suggest doing is ask if it would be possible in the future to swap to a buy to let mortgage if you ever needed to :)

I think you just want a normal residential mortgage and then when later you rent it out you seek permission then. Certainly my child (currently doing this the other way round - BTL loan first and when she can afford it she will move into it to live in) has been told it will be fairly easy in 2 years or whenever to convert it into a residential loan again.

Be prepared for lot of fees when you ask for a consent to let. We have 65% equity and Cheltenham and Gloucester are demanding a £1500 fee, a two year lock in and a 3% redemption penalty for renting our home out. They are also hiking our interest rate from 2.5% to 6.5%. They won't agree to put the interest rate back down if we move back in.

Thieving bastards.

That's very mean, Helen although by way of comparison my daughter's buy to let the fee is £1999.

Agree just do normal residential, for all you know overseas job may not happen. Get to that when you do.
Wh lives in our place for just under two years before moving out.
One phone call and one form and the bank were happy with the new status. No extra fees or Grief.
Bank of Scotland.

Can you try another lender and not mention buy to let at all. Co-op have this recorded on your details

thanks all, glad it seems a possibility with other lenders.