So much going for and against me - mortgage advice needed

[CryingSheep]

You could look into releasing the £300k or so equity in your current property for purchasing a new one. You may need to convert the existing mortgage to a BTL one anyway to be properly above board, so can re-arrange assets and finance so you have a new property without a mortgage and one with a BTL mortgage that you pay off with the rental profit.

Not sure if the contract specialist mortgage providers also cover BTL, where you only need a contract with 3 months+ to run to be able to use the contract rate as basis for loan potential.

In theory you could get a BTL mortgage with no current income (i.e. between contracts) if they base the affordability on the rent projection. Anyone done this?

This!

Plus if you're looking to rent your current property, it is not an option, you must get a BTL mortgage! The only downfall is with the above solution you will have much smaller LTV what would mean access to worse deals (higher interest).

[northernladuk]

This!

Plus if you're looking to rent your current property, it is not an option, you must get a BTL mortgage! .

Must you? What about getting a consent to let and just carrying on?

[WordIsBond]

Must you? What about getting a consent to let and just carrying on?

Yes, given the loan-to-value on that one I'd definitely try that first.

[Hobosapien]

Must you? What about getting a consent to let and just carrying on?

The risk is that the consent is denied. Depending on the lender they may only allow it for temporary situations and expect to convert to one of their BTL loans so the appropriate risk to them is covered.

If consent is denied or they find out a property has been let without permission they can call in the loan. Not sure how often in reality this happens with all the 'accidental landlords' out there bending the rules.

[WordIsBond]

If consent is denied or they find out a property has been let without permission they can call in the loan. Not sure how often in reality this happens with all the 'accidental landlords' out there bending the rules.

OP plans to make it into a let, it isn't one yet. So you ask for consent, and failing that, get a BTL mortgage before letting it.

I'd say chances are good that they'll give consent with that LTV. They know OP will have little difficulty getting another loan so they'll just lose the loan if they are sticklers for it.

[CMMEgroup]

CMME

Hopefully this helps but there are several lenders who will look to ignore the gaps between contracts and will be willing to lend in your situation. We have a bespoke underwriting service with lenders/underwriters and we can present your situation to them directly.

If I can assist further, please get in touch.