Move into a BTL?

saajan_12

Hi knowledgeable people of MSE! I've read almost every housing thread over the years, and taken lots of advice from here so thank you! First time posting something I couldn't find anything about. Here's my situation:

I am fortunate enough to own my home outright. Last year, I purchased a BTL flat, in an London commuter town, with the idea of catering to the professional renter market (and hoping I'd end up there down the line). Recently I was offered my dream job in London However it does come with long hours and that on top of the 2hr commute from my house is slowly grinding me down and its only been a couple of months!

Now my tenants in the flat are in the process of buying their own house and would like an early surrender - which gave me the idea I could move there myself! The flat would be a MUCH easier commute for me and as I'm ready to move anytime, I wouldn't need to worry about a void. The only thing is the BTL mortgage is on a fixed deal for 3 more years and has hefty ERCs. (I really didn't think I'd be in this position for several years!)

Here are some of the (wacky) ideas I had - not sure if any are feasible?

1) Would I be able to move into the flat with a BTL mortgage? I've heard of CTL on a residential, but can there be some kind of Consent To Live? Even if it was at the higher BTL rate..

2) Can I port the BTL mortgage to the house (roughly equal value) which I would rent out instead, even though I already own it (i.e. not buying/selling).

I've asked both of these questions to my mortgage provider, who referred me to my original mortgage broker, who referred me to the mortgage underwriter, and we've been in circles all week. So I was wondering if anyone here knew what might be the common position and whether this is even worth exploring. Would be greatful for any replies, or even something I haven't thought of yet. Thanks!

silvercar

Would be nice to think that you could do that, just on the basis that you own both properties and will have rental income.

I suspect the answer is that it will be individual lender decision on whether you can get a BTL mortgage on your current home and whether you will get agreement to turn the BTL mortgage into a residential one. Latter turns an unregulated mortgage into a regulated one, so I'd expect the lender to be checking affordability etc.

That said, I've never heard of anyone being repossessed on the grounds that they are living in a property on which they are paying the mortgage. People point out the dangers of lenders increasing the rates once they find someone has let a property, to cover the extra risks of a BTL, so in theory it would be hard to justify increasing a rate when it becomes residential- if you did it without consent and got found out.

G_M

Nothing to add eally - it's all down to the lender.

saajan_12

silvercar wrote: »

I suspect the answer is that it will be individual lender decision on whether you can get a BTL mortgage on your current home and whether you will get agreement to turn the BTL mortgage into a residential one. Latter turns an unregulated mortgage into a regulated one, so I'd expect the lender to be checking affordability etc.

Thanks for the response. I was thinking of porting the BTL mortgage to the house, to avoid ERCs and then there wouldn't be a residential mortgage at all.

I know I need to ask my lender - does anyone know if I should be focussing on the mortgage provider/underwriter/broker/solicitor? Everyone I've called has been very nice, but insisted I need to contact someone else.