Residential Mortgage to BTL

Hello123_2

Hi, hope someone can help.


We were due to exchange on the sale & purchase of house...bottom of chain pulled out so our buyers have pulled out...


We still really really want to buy the house but would have to find another buyer & complete in 2 months (as our mortgage offer expires).


Is it possible to convert our current residential mortgage into a BTL and still complete on the purchase of new house (would have to borrow deposit funds from elsewhere) until it is sold?


We are with Santander and have around 65% LTV mortgage. They have said they could give us 'Consent to Let'.


We are borrowing with a new lender and would obviously need to tell them.


Are there any other options?


Thanks in advance

nubbins

Someone with better knowledge may correct me but as far as I know most lenders will consider consent to let as self funding so you may be able to get another normal residential on top. Get yourself a good broker who will give you the options available.

Hello123_2

nubbins wrote: »

Someone with better knowledge may correct me but as far as I know most lenders will consider consent to let as self funding so you may be able to get another normal residential on top. Get yourself a good broker who will give you the options available.

Thank you, hope so.

shortchanged_2

Yes you can do something called let to buy.

This is basically getting a buy to let on your current property which releases equity for your new purchase.
As long as you qualify for the let to buy terms (usually the same as a buy to let) such as minimum income etc and the anticipated rent is sufficient then it is possible.

Hello123_2

shortchanged wrote: »

Yes you can do something called let to buy.

This is basically getting a buy to let on your current property which releases equity for your new purchase.
As long as you qualify for the let to buy terms (usually the same as a buy to let) such as minimum income etc and the anticipated rent is sufficient then it is possible.

We don't need the equity out of our house as we are going to borrow from somewhere else to avoid new applications/expenses etc.


This is short term until our house sells and in order to secure the next house.


Santander have made it sound very simple - just apply for consent, pay £300 admin charge and stay on current rate. No proof of tenancy required. Am I missing something as this sounds too good to be true?


I guess our current mortgage offer would have to be re-assessed?

nubbins

Hello123 wrote: »

Santander have made it sound very simple

:rotfl:

Every experience I have had with them has been painful but maybe thats my bad luck. I would definately be speaking to your other lender because you may start to find all sorts of things coming out of the woodwork. I have done similar to you before and quite often there is always some sort of issue with the lender, thats why I always use a broker.

OneEngland

Where is your deposit coming from? A gift or loan? You would need to declare to the new lender if a loan, whether the lender would have a financial interest etc. It is also quite likely that the new lender will not be happy if you are borrowing the deposit. A gifted deposit could be more palatable.
Without knowing your circumstances in anymore detail than above, I would think you would be better offer remortgaging to a buy to let to release equity for the deposit.
It would be worth you speaking to a broker who can matches you needs and requirements to the right lender(s)

SuperSaver123

Hello123 wrote: »

This is short term until our house sells and in order to secure the next house.

If it is short term to let out until you find a new buyer, then bear in mind if you go with new lender you need to look out for early repayment charge, some banks will do variable with no ERC, my broker told me. Perhaps staying with Santander is better but would you be able to get another (because that one is still residential with consent to let, I think) residential mortgage? Affordability?