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I want to move into one of my BTLs and change the mortgage to residential. Should I approach my current lender or re-mortgage with a different company? Do lenders generally have a problem with requests to convert mortgages? Of course I'll also inform my insurance company just curious about lenders' stance on this.
If you're a landlord that has done that then I'd really appreciate hearing your experience.
Hi, we just did move into out BTL ,but our lender -TSB ,had a problem with changing BTL to residential unless we paid a penalty fee which was about £2500 .As a result we were advised either to pay penalty or stay in the house as BTL - we had to write a letter to the bank to 'officially ' inform them we are the occupiers under that address now .In our current situation it didn't matter at the moment ,but if we were to invest more soon with support of the lender probably we would decide to convert it to residential,as you can't have more then 3 BTLs with TSB apparently.
That's interesting. Thank you!
Last week I had a client who was looking to do exactly the same thing as you. There were no options to 'convert' so it was a matter of remortgaging away from BTL and onto a residential mortgage. Based on their circumstances I approached a few lenders who said they didn't have a problem with it what the client was trying to do. Just remember, the new mortgage is based on 'affordability' rather than 'rental income'.
Why not engage the team at PTFS and get the benefit of a broker searching whole of market lenders to secure the best deal for you.
You can contact me via Direct Message, or 07788 219647 or call the team on 01206 654444 for personalised quote and advice
You said there was no option for your client to convert. As far as you know, would this be the same with all or most lenders? I know for the most part their policies are same or very similar but of course there differences too so just curious.
There was no option for my client to stay with the current lender as they only offered BTL mortgages. You may wish to speak directly with your current lender and see what they can offer. As you've only had the property a short while there may be early repayment charges to settle.
Ok. Thanks. Yes, there is an ERC that will be around £1,400 so I can live with that.
Thank you. I haven't owned it for 6 months yet so that's why I was wondering if I should approach my current lender to convert to residential.