Changing residential mortgage to buy to let - but not purchasing another residential property

[Sarah Chester]

Hi all,

I currently have a residential mortgage on an apartment but I'm looking to move in with my partner, who owns a property, so I would like to rent my property out. 

I can currently do a consent to let with my mortgage provider but they've said they wouldn't be able to provide me with a buy to let mortgage after my 5 years fixed term mortgage is up as I'd need to own a residential property to be eligible for this type of mortgage. I've looked into it and I'm struggling to find a buy to let mortgage where I don't need to have a residential property.

I will be moving in with my partner but my name won't be on the mortgage. We are thinking of buying together in the future but would like to live together in his place for at least a couple of years. 

Has anyone else had experience of this or have any advice on which lenders I could approach? I thought my circumstance would be fairly common so I'm surprised to find little on the subject. The only articles I can find on the subject tend to be referring to first-time buyers.

Thank you in advance

 

 

 

[Richard_Pia]

Hi Sarah,

Although options are more limited, as you have discovered already, there are still a number of lenders that should be happy to lend in this situation. Other factors need to be taken into account, for example, your own employed income and the rental cover calculation for the property. Best thing is to engage a mortgage broker who will know exactly which lenders are available and can make checks to ensure you meet their other criteria also.

Regards,

Richard

[Aston Carter]

Hi Sarah,

As you have already found out, the majority of mortgage lenders require an onwards residential purchase and class this type of transaction as "let to buy", whereby you maintain your existing property on a BTL basis and then purchase new residential home.

I had a discussion at a mortgage conference with Principality, a small specialist mortgage lender, who claim to be the only lender who would offer a mortgage on a "let to rent" basis, and do not require an onwards purchase in order to obtain a BTL purchase with them.

whether or not they are the only lender who offer this I don't know off the top of my head, but it's worth a try!

hope this helps!

Aston

[Richard_Pia]

Sorry I would have to disagree with Aston here. As you are not looking to do an onward purchase (just moving in with partner), and it will likely be some time before your current fixed rate ends and being ready to apply, you will be simply looking for a normal BTL remortgage when the time comes, not let to buy or "let to rent".

I was in the exact same situation myself just recently so have direct experience of this. I had no trouble finding a lender happy to lend.