Changing Mortgage to Buy to Let Mortgage

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Tink18

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My sister bought a house with her partner in 2017 just before the huge hike in prices. Unfortunately they have recently separated and she has remained living in the property while he is back living with family for now. They bought over the North side where he is from and she has no connection to that area so ideallt she doesn't want to remain living there so she is considering her options. Whether to sell the property or keep it to rent out to pay off the mortgage while she rents herself somewhere else. She will not likely be in a position to buy a property of her own for some time so she is concerned about letting go of a property given how hard it is to buy right now. What is the process and/or benefits of changing your mortgage to a buy to let mortgage if anyone has any experience.
Thanks
 
Hi Tink

Some of the lenders have a clause where they have a right to change the mortgage from a home loan to a buy to let loan, which has a much higher interest rate. However, they don't enforce it.

So she can let the house out if she wishes.

She does need to advise her insurance company though.

And maybe get An Post to redirect her post to her new address.

Brendan
 
Change her house insurance to ensure she is properly covered when it is let.

Would be slow to say anything to the bank, no real need! Get post redirected as suggested.
 
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If you get a tenant who refuses to pay six months down the line, can your sister afford to rent and pay the mortgage? Is the partner's name still on the mortgage and is he paying anything towards the mortgage?

If it was me, I'd look to sell.
 
It's not clear if your sister owns the house or they both own the property jointly. Leaving the house to one partner for living is very different than allowing them to rent it out. If both of them have joint ownership, best thing may be to sell when things are amicable.
 
This could get very messy. Consider this. She rents it out. Gets good tenants for years. Mortgage is paid down a fair bit. House goes up in value a fair bit. Ex-partner pops up and wants a share of the equity.

If she's still on the mortgage and looking to get a new mortgage, it might possibly work against her qualifying for a new mortgage, even if the rent is covering the mortgage payments. For the purposes of calculation, a new lender will discount the rent to allow for tax, expenses, vacant periods etc. So unless the rent is a lot over the mortgage repayment, it will be used as a liability on her income for the purpose of a new mortgage application.
 
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