Changing BTL (LTB) to Residential

Ian_Wilson1

I currently have a Let to Buy mortgage on my cottage and a Residential mortgage on my family home (currently living in)
Cottage is currently being rented out but the deal on the LTB is due to expire.
Would it be possible (if my rental property was free from tenants) to get a new Residential mortgage from a different lender when the LTB deal runs out?

holly_hobby

Its a Buy To Let mortgage you have on your cottage. (Let To Buy is basically a mge secured on your main residence, with the lender being aware you have a 2nd property - and in essence the reverse of a BTL ).

And yes to moving your mge, as long as you pass the lenders status checks & there is at least 25% equity in the property (if you did want to retain as a rental property), shouldn't be a problem.

If you want to move to a residential mge ( i.e no longer renting out) - your income must be enough to service both loans - and the LTV may be a little higher - although the lower the LTV the better the rate you will be able to secure.

You may get a fee free remge deal on a residential application too

If you decide to keep it on a BTL basis you will obviously need to factor in legal fees and mge product fees.

I would have a chat with a whole of market broker (check if there are any fees for gen advice), just to see whats out there.

Hope this helps

Holly