Changing Buy to let mortgage to residential

lauren891

Hi
I am in the process of splitting with my Husband, he will stay in our home and I will move into our rented property. We currently owe £135K on the rented property. 
I will need to change the mortgage to my name only and change from BTL to a normal mortgage, has anyone ever done this? any advice please? 
Thanks 

Emmia

You'll need to change it before moving in, usually lenders don't allow owners to live in their BTL properties.
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Have you contacted the bank to ask about switching it? They'll do an affordability test etc. 

silvercar

lauren891 said:

Hi
I am in the process of splitting with my Husband, he will stay in our home and I will move into our rented property. We currently owe £135K on the rented property. 
I will need to change the mortgage to my name only and change from BTL to a normal mortgage, has anyone ever done this? any advice please? 
Thanks 

It’s an interesting one. As you legitimately obtained the mortgage as a BTL there is no question of fraud or obtaining money by deception, it is “just” a breach of the mortgage conditions. Plus interest rates on residential mortgages are lower than BTL, so you aren’t gaming the system. Ideally you would discuss with the lender and get approval etc, but no doubt this is a difficult time for you. If there is any chance that the lender could reject your application to switch, it may be worth thinking about just moving in for now. I’ve not heard of anyone who keeps up with their mortgage payments being evicted for moving back in to a BTL. 

MisterMotivated

You could give your lender a call and ask them if you'd need to change the mortgage.  When I had a major change in circumstances a few years ago, I had to consider moving into one of my rental properties (although it didn't come to this in the end as I bought another property).  I called my lender and they didn't seem to have any issue with this whatsoever.

Hoenir

Does your lender underwrite residential mortages? 

movilogo

Most BTL mortgages are interest only. If this is turned to residential mortgage bank may insist on getting a repayment mortgage. This will lead to an affordability test. If you qualify then no problem but if not that can cause some grief.

Depending on your lender, they may allow owner leaving in BTL property as a temporary measure for 12 months under existing mortgage.