Is a buy to let mortgage essential?

[rossm]

Hello,

I'm looking at investing in my second property to let out, I already have BTL mortage on my first.

I can't afford a big deposit at the moment so looked at getting a standard mortgage. Are there legal implications if I then chose to let out the property?

I've searched for this on the forums before posting, and found that it can be done if I advise the lender of my intentions. Is there ever any problems with doing this, and should I advise them before or after I take out the mortgage?

Thanks,
Ross

[susan 2]

Ross - Yes you can take out a standard mortgage. However when you inform your lender you are changing to btl they will increase the rate. It's usually only by about 1 to 2%. I would ring an agent (not the company you are thinking of using) and have a general chat for more information. One thing though, you must have BTL insurance. That's very important, as if you only have standard house insurance and you need to claim it will be invalid. Best of luck.

[rossm]

Thanks for the reply Susan. I've spoken to an agent who confirmed what you said - usually advising the mortgage provider there has been a 'change of circimstances' after a couple of months will do it. Had the mortgage approved on principle, and because its fixed rate - the agent didn't think they would be able to increase the rate if I advised them about my circumstances changing in a few months.

Thanks again,

Ross

[Tweedle Dum]

I'm sure they will be able to increase the rate as you are changing the terms of the contract and so will they.