Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
I’d be grateful for advice on what should a simple issue, but isn’t.
I own two properties with similar value. I live in one of them with a residential mortgage of 50% LTV. I let the other one out with a BTL mortgage again at 50% LTV. I’d like to move into the BTL property and start letting the one I currently live in. Solution: remortgage the current BTL with a residential mortgage and remortgage the residential as BTL. Simple.
However that’s proving harder than it sounds:
(1) I can’t port the residential mortgage as this is usually only allowed where a new property is being purchased, which it isn’t in this case
(2) Several residential lenders won’t consider a remortgage application unless the applicant is living in the property at the time of application – but unfortunately I can’t move in until the new mortgage is in place
(3) In order to see a BTL property as self-financing, several lenders will want to see evidence of rental income, but I can’t start letting the property until I’ve moved out, and I can’t move out until the new mortgages are in place
Can anyone think of a solution to this chicken-and-egg dilemma?
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