Residential into BTL and viceversa

magicmcone

Hiya lovelies!

Trying to do the above (converting our current residence into BTL and move ourselves into what is now a BTL) and thought that it would be a somewhat straightforward process but it’s proving otherwise…😓.

Current broker is L&C and we had just the residential application rejected. Excellent credit scores, loan would be about 3.5x salaries (not including potential BTL income for affordability) with no dependants. Lender (Barclays) states that they could not verify the info provided.
The whole time we are having the feeling that the mortgage advisor is completely lost with the case and therefore the lenders.
Starting to stress out a bit, so would like to find out opinions if this kind of operation is particularly complex and if there are any brokers you could recommend or specific routes to take on this (maybe trying to get the BTL offer first could make the residential easier?…)

As said, any experiences/recommendations are appreciated.

Thanks in advance 

housebuyer143

L&C I haven't heard good things about. They only want the easy cases and then do the others badly. I would look for a local broker with good reviews. It's likely you need to sort the BTL first, as otherwise you probably won't pass affordablilty for the resi because they will take the other resi into account when doing affordablilty. The broker will know better though how best to do it - you might need to pay them as the better ones are not always free. 

ACG

Its funny isnt it, on the face of it it does sound really straight forward. 
But the reality is lenders will be thinking you are trying to get the resi on the BTL as its cheaper and the BTL on the resi because affordability is probably easier... (you would be amazed at how much this used to happen and how lenders are not on the look out for it). 

Things that can go against you are the values to the 2 properties, whether your incomes would support the new resi without the need for rental income and so on. 

Its one of those things that probably needs discussing upfront with the lenders to explain it and get it "pre-agreed". I dont think L&C are really geared up for that. They have probably just thrown it in, hoped (maybe even if inexperienced expected) it would be accepted and now found out. 

Try a smaller local broker, they tend to be more experienced and put in the extra bit of work needed. Im sure you will be fine though subject to a few things like mentioned above. 

magicmcone

Thanks both for the input. 

Will definitely be looking for someone that can manage the whole case and communicate it with lenders in a more detailed way. 

Really felt that was what was missing with L&C.

Feeling a bit stupid that I have wasted precious time due to lack of research, but will take it as learning curve.

Many thanks again

kingstreet

It may have been easier to do the BTL to residential remortgage and simply ask your current lender for consent to let on the current residential. Then when you've moved, look to remortgage the (by then) let property when you have three or more months evidence of rental income on it.