I am struggling to find competitive lenders who will allow a residential mortgage to convert to BTL

IAMIAM

House, currently mortgaged and lived in for 5 years, but now want to move away. Rather than CTL, long term, I want to keep it as a BTL and probably not return.

Numerous lenders say you have to let it out for 6 months first, then apply OR some will not allow me to convert it (remortgage to a BTL) as I was once owner occupier of the property AND/OR they want to see me as an owner occupier on a second property first. 

Any high street lenders who allow is straight away that don't charge extortniate rates 75/80% LTV?

amnblog

You are going about this the wrong way. Consult a mortgage broker.

K_S

IAMIAM said:

House, currently mortgaged and lived in for 5 years, but now want to move away. Rather than CTL, long term, I want to keep it as a BTL and probably not return.

Numerous lenders say you have to let it out for 6 months first, then apply OR some will not allow me to convert it (remortgage to a BTL) as I was once owner occupier of the property AND/OR they want to see me as an owner occupier on a second property first. 

Any high street lenders who allow is straight away that don't charge extortniate rates 75/80% LTV?

@iamiam The crucial criteria here is what your living situation will be - owner occupier, renting, living with family, in the UK/overseas, your employment situation, etc.

The most straightforward way would be to look for a compatible lender once you are in your new home.

getmore4less

Is this the same place you have recently changed deal and been looking for additional borrowing?

[Deleted User]

I watched The Matrix a few days ago and apparently Deja vu is a sign that we are in a computer simulation

https://forums.moneysavingexpert.com/discussion/6276517/which-mortgage-lenders-will-let-you-go-straight-from-residential-to-btl#latest

IAMIAM

Ok. I want to put my first home on consent to let (for two years with HSBC) with a view to converting to a BTL lender in 24-30 months time. I also want to buy a second property at the start of this 24-30 months which will be my owner occupier home. 

Which lenders will allow this?

K_S

@iamiam Plenty of mainstream BTLlenders will consider this scenario because you'll be an experienced landlord, will have a rental track record and (at completion) will also be an owner-occupier.

IAMIAM

Thanks, so when I apply for a new mortgage now, do I declare I already have a property going onto CTL, I presume they will take into account the fact I have two mortgages on one salary, and the rental income won't be allowed to be used straight away?

[Deleted User]

If you are applying for a residential mortgage and intend to let your property out after moving (a let to buy mortgage, not a buy to let):

Certain lenders will ignore background properties with a letter from a letting agent confirming the rental amount is greater than mortgage
Certain lenders will only ignore if they are doing both the LTB and the Residential
Certain lenders will take the full mortgage payment as an ongoing commitment regardless of your intentions
Certain lenders will require the amount you can borrow to cover the balances of both mortgages
Certain lenders will take your property that you intend to convert to LTB and will stress it against their btl criteria to ensure it is affordable regardless of what a letting agent says
Certain lenders wont do it unless you have tax returns showing you declaring the rental income.  

There isnt a definitive way of saying what is best as you might find a lender ignoring your background property still lends less than one who takes its costs as ongoing due to how their affordability calculations are running.   

The combination of what makes a good let to buy let lender and a good residential will depend hugely on the overall case and what you plan to do. Some lenders need you to complete on both at the same time, some will be ok with you completing on the let to buy and then the purchase separately.  


There is literally no way of saying what the best lender is without a full fact find of what you plan to do and what your current circumstances are.   Anyone who gives you a name of a lender with the information available here doesnt appreciate how complex these transactions are. 


If you are going to apply for a residential mortgage with your old property actually rented out for 3-6 months then it gets a lot easier as you can prove the property is rented and you can prove the rent you get.   You will still find some lenders taking a hard line though as some will take the mortgage as a commitment regardless and then offest against rental income shown on tax returns. If you dont have tax returns then you cant add this income.  


At some point you are going to take the advice of dozens of people on the forum and get a broker to actually advise you on what your best option is

edit:   I forgot to add that some lenders wont ever entertain a buy to let/let to buy mortgage if you have ever lived in the property.  Some will only take it as a BTL after is has been a LTB already.