Two residential mortgages whilst trying to change one to buy to let

UKresident3333

eddddy said:

UKresident3333 said:

Would the new BTL lender we'll be applying through care at all that we clearly have two residential mortgages and what the conditions of those may be?

They'll probably want to see your bank statements, so they'll see you're paying 2 mortgages. And they'll probably ask you if one will be paid-off when you get the BTL mortgage.



TBH, I think they could probably guess that there's a good probability that you've 'broken the rules' - but maybe they would purposely turn a blind eye, and not ask you too many questions.

On the other hand, I guess they might suspect that you fibbed on the application form for your current mortgage (by saying you would redeem your first mortgage) - which is technically mortgage fraud.

So I guess they might refuse to lend to you on principle, and/or because they'd be worried that if you've fibbed on mortgage application forms in the past, you might do it again.

But it is possible to have more than one residential mortgage without breaking the rules. So why would they just assume we have broken the rules?

eddddy

UKresident3333 said:

But it is possible to have more than one residential mortgage without breaking the rules. So why would they just assume we have broken the rules?

Generally, there are 2 different types of relevant mortgage:

• A standard residential mortgage - for your primary home
• A second home mortgage - for a second home or holiday home

By looking at your address history, they'll be able to see that you used to live at the first property.

And they'll also be able to see that you stayed with the same mortgage lender for the first property, even though you moved from the first property to the current property.

But it could be possible that you converted your mortgage from a standard residential mortgage, to a second home mortgage when you moved (or even to a BTL mortgage) - without changing lender. So they might assume that's the case.



But is it credible that you're using the original flat as a holiday home / second home? If they're a long way away from each other, it might be credible.

But if they're a few miles apart, that seems unlikely.