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  • Mortgages & Finance

    Mortgage Info Advice

    Hi,

    I'm after a little advice, i'm not sure if this is even an issue but it popped into my head during our predicament.

    Basically, we have a few properties that we currently let out, we planned to move out of our home into a larger family home at some point in the near future (3-5 yrs), but this has been accelerated due to having a little one.

    I wondered with most buy to let mortgages, they require you to own a residential property/mortgage, so if we sold our property then moved in with family/rented for a few months until we found the right home we want to move to. How would the mortgage companies look upon this, and if it is a no-no how do other people get around this, as I assume it is not an uncommon scenario.

    Thanks for any advice.

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    Hi,

    it would depend on the exact terms of your mortgages, but I don’t think this would be an issue. As long as you remain a property owner, the lender shouldn’t have an issue.  Who are the mortgages with?

    Lenders are aware that circumstances change. As long as you don’t move into one of the BTLs, you should be fine.

    If you’d like to discuss this in more detail, feel free to contact me.

    Regards,

    John Baker, Property Tribes FS

    07979 365467

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    John Baker

    Property Tribes Financial Services

    You can contact me via Direct Message, or 07979 365467 or call the team on 01206 654444 for a personalised quote and advice

    <!--EndFragment-->


    Thanks for your reply John.

    That's the issue, we wouldn't officially be homeowners for a few month, most likely we would move into the mother/father in laws for up to 6 months, we are struggling to find what we want as we are wanting to get something with an annex/granny flat to accommodate the mother/father in law.

    Mortgages are with TSB and Accord at the moment, im sure if we contacted these individually and explained our situation we would most likely be ok, but just wondered if anyone had any experience with this in the past ?

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    The key term is property owners, not home owners. You will still own property in the form of the BTLs. I can think of half a dozen lenders off the top of my head who would give you a mortgage for a BTL even whilst you were renting / living with family, as long as you own a property.

    As I said before, circumstances change. If you met the lender’s criteria at application, that’s the key thing. Consider how many people’s lives change over the course of the mortgage. Kids / change jobs / marriage / divorce / sickness.

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    John Baker

    Property Tribes Financial Services

    You can contact me via Direct Message, or 07979 365467 or call the team on 01206 654444 for a personalised quote and advice

    <!--EndFragment-->


    You are correct in thinking that most Buy-to-Let mortgages are available to home-owners only. It's not "good enough" that you once owned a home, as its more a security thing. ( You have something to lose if they have to repossess. Encouraging normal payment behaviour ).

    Typically, id say here that all is not lost and some lenders allow Buy-to-Let Mortgages to none-homeowners.

    Though you are in a better position as you have a few background Buy-to-Let Properties, so even more doors are open to you. The above security we discussed? Many are happy with that being background BTL.

    You will though have a wider variety if you did not try to buy a BTL when you are in the middle period (have sold, looking to buy a resi).

    Hope this helps Daniel. When the times come, I hope you consider the team at Bespoke Finance who are always happy to help property investors expand their portfolio or personal mortgages.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________


    Hi Adam,

    Thanks for your response. By your reply do you mean we may have to re-mortgage whilst we don't have a residential home ? OR do you believe the mortgages we are currently on would take into consideration our situation and be happy for the mortgage to continue ?

    We would not be looking to remortgage/buy further properties in the interim period as both mortgages are recently renewed so we have a good couple of years leeway on them.

    We basically would like for our situation not to alter and be able to carry on with the mortgages we have.

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    Apologies Daniel,

    I have misread your opening post, you would not be looking to remortgage/buy further BTL properties.

    You should have no issue, obtaining a residential mortgage after selling your current one (even if you live with parents for some time).

    It is not a "no-no" for residential purposes. A good regulated mortgage adviser will be able to concider options for you.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________


    Your existing BTL lender will allow you to continue your mortgages while you are looking for another residential home unless it is written in your terms and conditions that you have to be home owner at all times but this, in practice, is an academic point.

    I had a similar situation like you for around 2 years.

    Good luck with your new home search.

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