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  • Buy-to-Let

    Switching from Residential to BTL

    I'm planning on buying my first property as a residential property for me to live in but then looking to rent that property out as soon as possible. I understand that I need to change my mortgage to a BTL mortgage but I don't know how quickly you can do that. I assume that depends on a variety of factors and the lenders policy. I would be grateful if anyone could share their experiences or advice in this area - thanks :-)
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    Be careful here Tom. Most lenders would expect you to live in your property for 6 months or a year before wanting to move out! They are very wary of people using residential as a way into BTL and vice versa.

    After a suitable amount of time, you can apply to your current residential lender for "consent to let".

    They may agree to this (which could involve a fee and putting up your interest rate), or they may wish to move you to a BTL product. Either scenario would only take a matter of a few weeks at the most.

    Or you could just re-mortgage your property onto a BTL mortgage.

    Contact Property Tribes Mortgages on 029 2069 5480 for advice.
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    When we bought our current home in 2009, we didn't want to move straight away, as our old house was right in the middle of catchment for the school we wanted to get our daughter into, and the new house was a short distance outside catchment. I'd paid off most of my mortgage and by re-mortgaging we were able to buy our new house without a resi mortgage, so we applied for a BTL on the old place (with Cheltenham & Gloucester), explaining that we would be moving to the new house the following summer and would be renting the new house out in the meantime. They were fine with that; we just had to tell them when we moved.

    I presume that your situation is a bit different - you probably don't have another, unencumbered, property that you'll be letting out while you're living at the new place - but knowing of our experience may be of some help.
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    The key to the process is your intent.

    The original post implies there is prior intent to rent the place out. Hence this is not really a normal residential loan application. The applicant does not plan to stay.

    For there to be mortgage fraud, there has to be an intent to deceive and / or mis-represent the facts. If the borrower was applying for a residential loan and they intended to move out soon after, that info should be put down on the loan application. Highly unlikely the lender will be happy and a good chance the loan would not be approved. To hide the plan and not state it on the application is when fraud occurs.

    There is no minimum time one has to stay unless the loan contract has a minimum. Things happen in a person's life. Job change, family change, etc. Hence you might move in and then 2 weeks later find out you have to move. That does not mean you intended to do so before you moved in.

    The two loan agreements are different because the risks to the lender are different. BTL is one scenario and an owner occupied property is another. Lenders can address both. They just want to know which set of risks they have to prepare for.
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.