Switching residential to B2L mortgage

georgan

Hi,

when a property owner turn their primary residence to a B2L they have to inform their lenders re their mortgage. It is said that some lenders may retain the terms of the mortgage without change, whilst others may change it to a B2L rate charging also an admin fee.

I would be interested in people's experience who have done this before and could share who their lender was and how they exactly reacted.

Many thanks

Aris

_Andy_

Aris

To make it easier to get a quick response - which lender are you with (I'm assuming you're wanting to change your own mortgage)

Thanks

georgan

hi Andy,
I am specifically interested in finding out what the following lenders do in such situation:

Nationwide
HBOS
HSBC
Abbey

Aris

georgan

Any thoughts on this?

Old_No.7

Hi there, we're with Alliance & Leicester and the process was very easy there, but that might be because they don't to BTL mortgages, and therefore don't try to get you onto one of those. They just wanted to retain us as customers I suppose: we paid £125 for a Consent To Let that's valid for 3 years. We have since remortgaged with them as our discount period came to an end and that was straightforward too. 2 conditions though (that I can remember): we can't borrow any more money on the property (i.e. release equity) and we had to include a bit of text in the tenancy agreement for the new tenacts about how we used to live there and might need to take it back into use as our main residence at some point.
I know it's not the banks you asked about but hope it helps anyway!

georgan

Hey #7,

appreciate this. This is an area that not much has been written about, therefore I was aspiring to make a collective account of experiences.

Any more experiences with any banks?

Aris

spinks

We were with HSBC and they initially said that we would have to redeem the residential mortgage and remortgage on a btl. They wouldn't take into account the fact that we were already customers so would in no way waive any erc's or fees for setting up the btl mortgage.

In the end they agreed to consent to let for a period of 12 months but we would then have to switch to a buy to let with all the normal fees involved.

HTH.

MarkyMarkD

Old No.7 Whilst A&L didn't do BTL mortgages until a year ago, they now do.

But AFAIK they are still one of the most generous lenders, and will allow you to keep your residential mortgage product (and its cheaper rate!) subject to a "consent to let" fee.

owitemisermusa

spinks wrote: »

We were with HSBC and they initially said that we would have to redeem the residential mortgage and remortgage on a btl. They wouldn't take into account the fact that we were already customers so would in no way waive any erc's or fees for setting up the btl mortgage.

In the end they agreed to consent to let for a period of 12 months but we would then have to switch to a buy to let with all the normal fees involved.

HTH.

Hi Spinks,

Interesting.

Would like to know how you got them round eventually? Did they limit your remortgage choices since they only allowed you 12 months consent?

Thanks.

spinks

owitemisermusa wrote: »

Hi Spinks,

Interesting.

Would like to know how you got them round eventually? Did they limit your remortgage choices since they only allowed you 12 months consent?

Thanks.

We didn't actually take them up on their offer as it worked out better for us to pay the erc's and get a new btl elsewhere so can't comment on that one unfortunately.

owitemisermusa

Thanks Spinks.

Can anyone recommend a comparison of BTL mortgages online or otherwise?

Ta.