If I get Right To Buy for my Islington Council House Can you take out a 'Buy To Let' Mortgage
I qualify for being a council tenant for 16 years
In simple terms, No.
There are many residential lenders that will offer attractive rates for right to buy (RTB) as they will include your discount towards your deposit requirement and this will make the rates generally far lower than buy to let (BTL) and the arrangement fees will usually be much lower.
Setting this aside, RTB will usually insist that you are residing and owning the property for at least 3 years or you forfeit your deposit. An RTB mortgage must therefore be a regulated residential contract. A BTL mortgage is neither regulated by the FSA nor classed as residential and as a criterion for BTL is that the owner is NOT occupying the property and that it isnt within the charge period for RTB this proposal could not work.
there are many solutions for RTB and if you wish, feel free to get in touch.
www.darrenasmith.2plan.com | 09.16.11 @ 13:22