BTL remortgage, CTL denied

Kim.wigley

We had a residential mortgage for 4 years. We relocated, and have had our house on the market for 6 months. The residential mortgage product expired in August 18, and we reverted to Santanders SVR (which I then changed to FOR as the house was for sale and I didn't want to pay any arrangement fees etc).

House sale has fallen through, and we now need to let the property. I applied for a CTL, explaining the issues. We have a remortgage in progress with Clydesdale to a BTL interest only mortgage (I spoke to Santander, they will do nothing for me on an interest only option because they would require £150k equity). They have denied the CTL saying we have only recently changed mortgage product and therefore would have to move to a BTL mortgage with them or another provider.

My question is - what do I do in the meantime? We have lined up a tenant, we are 3-4 weeks into the remortgage process, can we let now because we ARE moving product or do I need to wait until it's all signed and transferred (and official)?