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Can I Change My Mortgage to Buy to Let in Nottingham?

The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

If your circumstances align and your mortgage provider is in agreement, it’s definitely possible for you to change your residential mortgage to a buy to let mortgage in Nottingham.

After owning your home for some time, you may want a change. Maybe you’re planning to move in with a partner or friend who already owns property, or perhaps you’re eying a new home to stay in. In some instances, you might even be considering moving to a rental property.

Regardless of the scenario, retaining ownership of your current home and converting it into a buy to let property might appeal to you. This move could transform you into a landlord, as it provides a boost to your income.

How to change your mortgage to buy to let in Nottingham?

If you are wanting to change your mortgage to a buy to let, firstly speak with your lender to ensure the change is an option they’ll accept. If you’ve got their go ahead, the next thing on your to-do list is to consult with a trusted mortgage broker in Nottingham.

This is because you’re basically looking at a remortgage – a swap of mortgage types. Whether you stick with your current lender or venture to a new one, seeking expert mortgage advice in Nottingham will help you land a favourable deal to transition to.

The reason why you will be remortgaging, is because the terms of your deal are changing. It’s not just as simple as asking the lender if you can do it, you’ll need to pass their lending criteria to be accepted for a buy to let mortgage.

What criteria do I need to meet to change my mortgage to buy to let?

First and foremost, you’re generally required to stay with your residential mortgage for a minimum of six months after making the change. Post this time, several other variables will be considered.

Affordability

Your ability to afford the mortgage is dependant on your property’s rental potential. Most lenders prefer stress-testing your property to see if you can cover at least 125% of your monthly mortgage payment.

Equity in Your Home

Even though there’s no explicit deposit to make, it’s crucial to have significant equity in your home for remortgaging onto a buy to let deal. Lenders typically demand a minimum of 20-25% equity in your property, a figure that might escalate for those with adverse credit histories. For securing a new property, more equity could be required.

Credit History

Having a poor credit history can harm your chances of obtaining a mortgage, but it’s not impossible. There are bad credit mortgages tailored for buy to let cases, though past credit hiccups can be limiting. The key here is investing time and effort in improving your credit score and being far removed from any previous financial troubles.

Type of Property

If your aim is to convert your home into an HMO or holiday let property, you might find your pool of lenders and deals depleted. These are specialised circumstances requiring expert insight from a mortgage broker.

Landlord Experience

Some landlords might find their choice of deals and lenders limited. Some providers stay away from first time landlords, while those with prior landlord experience hold a clear edge. Nonetheless, we collaborate with a wide range of mortgage lenders, and plenty of them entertain first time landlords. We advise discussing this further with our mortgage advisers in Nottingham.

Can I live in my buy to let property?

No, you cannot live in your buy to let property. This would be a breach of your mortgage agreement and could result in serious consequences for you and your home.

Letting Out Your Current Home to Buy a New Property

Shifting to a rental model with the objective of buying a new property is referred to as a let to buy mortgage in Nottingham scenario. This approach, popular amongst individuals aiming to enhance their income while relocating, is similar to a standard buy to let. The only difference is you’ll be juggling two mortgages instead of one, escalating the need for your lender to assess your financial ability to bear the load.

How many buy to let mortgages can I have?

Even though there’s no strict cap on the number of mortgages, your financial risk profile influences your ability to secure additional mortgages. Our dedicated mortgage advisors in Nottingham stand ready to clarify this for you.

Could consent to let be an option?

An alternate solution might exist in the form of ‘consent to let’, an option usually availed as a short-term measure. Depending on your lender, you’re normally restricted to 30-90 days within a year under this scheme. This option can only be considered if it’s available with your lender.

We invite you to consult a Certified Buy-to-Let Expert to understand the options for converting your home into a buy-to-let. Book your complimentary mortgage appointment today with a reliable member of our team, who will review your case and discuss potential deals that might interest you. Additional buy-to-let mortgage advice can also be provided.

Speak to a Qualified Buy to Let Expert

To learn more about the options you have available for converting your residential property into a buy to let, book your free mortgage appointment today. A trusted member of our team will be able to go over your case and let you know what deals you have access to, as well as providing any further buy to let mortgage advice you need.

Date Last Edited: February 8, 2024

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