Repercussions of flipping from BTL to Residential mortgage

Repercussions of flipping from BTL to Residential mortgage

8:29 AM, 27th January 2017, About 5 years ago 12

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I would like to buy a house that I could let out, however if necessary I would be happy to live in it.FCA

Clearly it is a lot easier to get a Buy to Let mortgage, so I am thinking of going down this route.

If for any reason I struggle to let it out how easy is it to inform the lender that I want to switch it to a residential mortgage.

Would there be any problems in making this switch so, if for any reason I didn’t meet their residential lending criteria could they refuse the change, thereby forcing me to remain on a BTL.

Many thanks

David



Comments

by Onslow Clough

15:37 PM, 31st January 2017, About 5 years ago

Reply to the comment left by "Neil Patterson" at "30/01/2017 - 08:02":

Would the Furness family btl product that you have posted be applicable in my issue?

by Neil Patterson

16:02 PM, 31st January 2017, About 5 years ago

They also have "Consumer" versions which I think may be closer but I am not sure of their exact criteria wording.

If you have any intention of living in the property in the future at any point then it is deemed a regulated BTL, but that does not mean it is a substitute for a residential mortgage and does not imply automatic consent for you to live in it on the same loan contract.

If I was still an IFA I would be concerned that I do not really understand your exact intentions and it may be considered I misled the lender.


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