BTL to residential

superM

Hi,

Is it possible to remortgage BTL to residential mortgage with another lender?

Thanks

kingstreet

I can't imagine why it wouldn't be possible as long as the status, affordability and valuation stack up.

superM

Thanks for replying back.

Unfortunately due to my circumstances my fanily had to move into the BTL property. I am aware this is not right thing to do but I had no choice. Move in or be homeless.

My BTL mortgage is showing on my previous address which is my parents address. Wondering if I apply for residential mortgage with another lender. They will see I have an active mortgage account on my previous address and they may question what that relates to.

Do you think that would be questioned? What are my options?

Thanks

Lilla_D

Just to clarify, are you currently in a rented accommodation yourself, your family members moved into your BTL and now you're considering buying a property for yourself to live?

Or you moved into your BTL and thinking of remortgaging this one onto a residential deal?

It makes a difference. If you live in the property yourself, then as per kingstreet's post, subject to affordability, you can remortgage to a residential deal without any issues.

However, if you personally doesn't live in the property, then you have two options:
- either you remortgage to a residential deal and when you buy for yourself, that will also be a residential mortgage, but affordability may be an issue,
- or you remortgage to a regulated buy to let deal, which allows family members to live in and pay rent to you.

Either way, when you remortgage this property, the new mortgage will replace your current mortgage. So it's not a case of the new lender finding out about your current mortgage and questioning it, but you actively declaring it as something to be replaced.