Who can I remortgage regulated tenancy with?
8:04 AM, 9th July 2021, 5 years ago
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Hi, I am interested in buying a regulated tenancy property that has had the same tenant since 1975. I am looking to take out a Buy to Let with a much higher interest rate to do this.
However, what I would really need to know is if there are lenders out there that would entertain this idea when this mortgage deal runs out.
Would I be able to remortgage this new purchase further on down the line?
I want to go in with my eyes wide open.
Many thanks
Alex
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Member Since July 2013 - Comments: 2006 - Articles: 21
12:37 PM, 9th July 2021, About 5 years ago
Hi Alex
I think it is unlikely you can re-mortgage. We have several “sitting tenants” and lenders aren’t interested because it is impossible to be sure of getting vacant possession. I would be wary of taking out a loan unless the terms are fixed for a long time. Suppose you borrow on a 2 year fix at say 4.5% pa. At the end of two years the same lender says it’s 9% pa plus a 2% arrangement fee. Unless you can re-finance with someone else or raise money elsewhere you are at the lender’s mercy. I have known of lenders demanding the borrower pay a new arrangement fee immediately the fixed term ends, failing which they will sell the property over the borrower’s head.
Member Since June 2019 - Comments: 8
11:30 AM, 21st September 2021, About 5 years ago
There are some lenders who can consider this, depending on your full circumstances. Obviously this would be outside of the standard ‘normal’, but there will be options and you would need to contact each lender separately.
It would probably be viewed the same as with protected tenancies.
Feel free to drop me an email [email protected] and I can look into it for you.