Hi, have a few queries regarding a BTL mortgage, I am selling my house (PPR) and looking to buy a multi unit 3 story house part let with 4 tenants current income 39K and a vacant floor which i will live in.
I will have a deposit of 250k and need a loan of 375K = 60% LTV, I am not worried about the tenants or becoming a landlord as I am aware of the tax and costs involved even with a troublesome tenant, I have lots of building experience from a previous life so not worried about maintenance, I have a PAYE 55K income. Previous mortgage and savings = 1.5K pm for 1 year
This will become my family home in time, 2 years max, don't need to get into the reasons why I want to buy this and convert this way as it is not for the rental return so not worried about problems I may come across being a landlord as this is will be short term and become my family home, Then I will look to transfer this mortgage back to a residential mortgage.
Now for the questions.....
1) Can I take a BTL without another PPR??
2) Am I in a good position to secure this loan??
3) Can I tell the bank I wish to live in the house aswell as tenants or not?? If not I can *live* in my fathers house, will this satisfy the bank or will they even care??
4) When I have vacant possession can I easily change to owner occupier mortgage??
5) Which type of BTL mortgage should I take out to allow this without penalties bearing in mind I want to change it within 2 years, without penalties!!??
6) Any other considerations I should take on securing the BTL mortgage or carrying out my plan??
7) See any holes in my plan??