Consent to let or buy to let options
Both my self and my girlfriend own a property each, both with mortgage ratios of 90% LTV. We have both lived in our properties for a year and now plan to rent one property and live in the other, whilst saving for another deposit for another house. Ultimately we want to end up in a situation where we are Renting out our two current properties and living in the third. This should take about 18months.
After a bit of research I have found that for a more permanent measure we may need to transfer to a buy to let mortgage, will this be possible with a 90% LTV ratio or should we stick with a consent to let for the time being?
This brings me onto my second question. Again after some research on this site I have read that it may only be possible to claim mortgage interest as an expense if the borrowed money was used to fund our property portfolio. Does this mean I cannot claim interest as an expense against rental income whilst using a consent to let?
Your help will be much appreciated.
Kind Regards
Chris
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Member Since February 2011 - Comments: 3453 - Articles: 286
9:13 AM, 18th February 2016, About 10 years ago
Hi Chris,
Please see our mortgage sourcing calculator >> https://www.property118.com/mortgage-sourcing/
However there is one lender that will go to a maximum of 85% and a few will consider 80% and the majority 75% LTV. However this all depends on criteria matching your circumstances.
You can claim mortgage interest payments for tax purposes in a Let to Buy scenario if you declare the properties as you should to HMRC, but the levels of relief you can claim have changed. Please see >> https://www.property118.com/budget-2015-landlords-reactions/76164/
Member Since June 2013 - Comments: 381 - Articles: 61
12:32 PM, 18th February 2016, About 10 years ago
Neil is correct that BTL mortgages are only available up to 85%LTV and even then you will of course have to meet the lenders criteria in the first place.
CTL is your best bet for now (if available, although that consent usually only lasts 12 months at a time and can be repealed at any time by the bank) and I suggest that you try and repay the debt down to achieve a BTL remortgage asap.
Comments: 59
7:47 PM, 18th February 2016, About 10 years ago
hi i have been asked to ask this question by a pal
can he use a different name on a mortgage application to his name on companies house I.e
companies house paul brown
mortgage john paul brown
would it be illegal to do this if he was found out by mortgage company for using false I.D
WEIRD QUESTION TO ASK BUT HE NOT TOLD ME WHY YET