Transferring BTL back to a residential repayment mortgage?

by Readers Question

11:47 AM, 13th January 2020
About 8 months ago

Transferring BTL back to a residential repayment mortgage?

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Transferring BTL back to a residential repayment mortgage?

I had a repayment mortgage when I myself bought my home in 2002. I bought another house with my boyfriend in 2015.

My original house turned into a rental with a BTL mortgage. I want to leave him and go back to my house to live. I need to change my BTL mortgage back to a residential repayment mortgage.

Can I move back in when my tenant leaves in 1 month time as the tenancy has now expired?

The house will go on the market that I joint mortgaged on a repayment with my boyfriend. I want to go back to my house and the tenancy has expired, but it’s still a BTL mortgage.

Any advice will be gratefully received

Eboni



Comments

Neil Patterson

11:54 AM, 13th January 2020
About 8 months ago

Hi Ebony,

This depends on what you arranged with the lender when you moved out. If it was a simple consent to let for a defined period it is likely you will be able to move back without changing anything or much.

However, if the mortgage product was transferred to a BTL product from a residential mortgage and based on rental income then it is likely you will need to start afresh with a new residential mortgage application.

Lucie Wade

7:53 AM, 14th January 2020
About 8 months ago

If it was arranged on a consent to let then you can move back in and inform your lender. If you changed it to a proper bit to let then you can’t live there officially until you’ve changed it back to a residential. This is a simple remortgage process most of the time with free solicitors and free valuation. The downside is if the other one is not sold yet this will be taken into account by most lenders as a commitment and reduce your borrowing capacity, if you can it would be best to do it simultaneously.


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