TechyCAD

We sought advice from a mortgage broker about this issue. We moved from UK to Aus end Dec 2012 and had our house on the market but were worried it wouldn't sell in time so were looking at other options. ( we sold in time, by the way, but here's the advice we got). Ok, banks will only allow you to have a buy to let, interest only mortgage/remortgage when you are renting the property out. They won't let you have an ordinary interest only mortgage for renting. You can take out an interest only mortgage without telling the bank you will be renting the property but if they find out they can make you pay off the remainder of the loan immediately. Not a risk worth taking I think you'll agree. The downside of the buy to let interest only mortgage is that they will only give you a mortgage for 75% of the property's value. This is fine if there is plenty of equity in your house but if your property has lost equity or worse still is in negative equity - then not so good. 75% of the equity may not be enough to pay off what you currently owe to your current mortgage lender in order to switch. the other factor is that you need to contact your local authority and get permission to register as a landlord. (Fee involved) and this means you need to get the mandatory electrical, gas and structural safety inspections/certificates done. You will also need to take out landlords insurance to cover the different risks posed to the property by having tenants as opposed to being owner occupied. Sorry to be a prophet of doom but we thought this would be a quick and easy fix to our problem and would also let us hang onto the property until the market picked up again and then maybe get some of our investment back but it just wasn't going to be a viable option for us as our house had lost so much equity, 75% mortgage didn't cut it. Also, too much hassle with bureaucracy etc. thats not to say it won't be a suitable option for you though, so look into it, just make sure you don't jump into anything with your eyes closed. All the best whatever you decide to do.

Hi there, new here. We move in 71 days. Off to Mackay. So much to do. House went on the market finally last week, no viewings yet :confused: almost got one car sold, so that's a start. Got a job on Monday :biggrin: yeah! Big relief, slept like a baby lat few nights, first time in ages. About to start major clear out operation, have booked a spot at an indoor car boot sale on Saturday so hopefully will get rid of a lot of stuff there, will be putting some better stuff on eBay. We are shipping our furniture but haven't finalised the booking yet as I only have one week's holiday accommodation booked just now. Need to get something a bit more long term sorted.