An owner mortgage is cheaper than a buy to let mortgage. So telling them should result in a reduction.
BUT BEWARE financial institutions are out to con every penny they can from you:-
- They will probably tell you it is going to cost £xxxx administration charge to alter – so you could actually be worse off!
OR
- They cannot alter your fixed rate until the term expires!
This seems to vary depending on which lender you are with. Some lenders simply don’t care if you want to move into your buy to let property, they just want your main residential address updated, and then will let you carry on with your current product.
Others say they treat this on a case by case basis and may need to reassess your entire circumstances and decide if you can have a mortgage with them at all. Those lenders that would want to reassess you will often demand that you change products and you are then liable for the early repayment charge (ERC). However, if the lender will accept you as a residential applicant you may be able to negotiate over this, but if they won’t accept you as a residential customer, then you would have to move the mortgage to a new lender, ie remortgage, and would then definitely be liable for the ERC.
Peter McGahan
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to.
They should be glad to hear that.
Eddy T | Jul 19, 2009 | Reply
if its short time then i wouldn`t bother if its not tell them and they will probably change your mortgage to a possible cheaper one
bud | Jul 21, 2009 | Reply
An owner mortgage is cheaper than a buy to let mortgage. So telling them should result in a reduction.
BUT BEWARE financial institutions are out to con every penny they can from you:-
- They will probably tell you it is going to cost £xxxx administration charge to alter – so you could actually be worse off!
OR
- They cannot alter your fixed rate until the term expires!
luludoodie | Jul 22, 2009 | Reply
This seems to vary depending on which lender you are with. Some lenders simply don’t care if you want to move into your buy to let property, they just want your main residential address updated, and then will let you carry on with your current product.
Others say they treat this on a case by case basis and may need to reassess your entire circumstances and decide if you can have a mortgage with them at all. Those lenders that would want to reassess you will often demand that you change products and you are then liable for the early repayment charge (ERC). However, if the lender will accept you as a residential applicant you may be able to negotiate over this, but if they won’t accept you as a residential customer, then you would have to move the mortgage to a new lender, ie remortgage, and would then definitely be liable for the ERC.
Peter McGahan
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to.
Impartial.co.uk | Jul 25, 2009 | Reply