Jump to content

Process for switching residential mortgage to BTL


Recommended Posts

Hi,

We're in the process of switching our current mortgage to BTL and purchasing a new home to live in.

We've gone through a broker to arrange the mortgage, but they've said they'll require a conveyancer for the purchase and all sorts of fees associated with the process. Does this sound right? Would it be easier/cheaper to go direct to the lender for the mortgage?

Thanks,

Ark

Link to post

You can have it faster, cheaper or done better. Pick two.

Like most things in life you get what you pay for. If you already own a few homes you should know whats involved, you should know that a cheap survey or a cheap lawyer is a fools errand that will bite you one day. Going direct for the mortgage will be cheaper of course. Haggling with me on fees is a guaranteed way to ensure you dont get a callback!

Whats your priority here? This is like asking if you go to Ikea and fit a kitchen yourself will it be cheaper? Yes. Of course. Will it be better than a pro? Probably not. Will it be quicker than a pro? Definitely not.

Pick two.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

Link to post

What Stuart said! :)

Property investor ¦ Commercial Finance Broker ¦ Ex banker/underwriter with over 20 years lending experience. 

Commercial Lending Manager at Real Finance Ltd - www.realfinance.co.uk
Happy to discuss any queries regarding property finance for  Company/Complex BTL, HMO, MUB, Holiday Let, Commercial, Bridging & Development.  

kirsty@realfinance.co.uk
07494949852

Link to post

That's fair enough, and I totally get that. But I don't understand what the conveyancer is doing?

I already own the property. I'm just taking out a different type of mortgage on it.. Why do I need legal work for a remortgage? Or a survey for that matter?

Link to post

Hi there,

You definitely need a solicitor for a remortgage when changing lenders and mortgage type. Even if you were to go direct to a bank, you'll still need a solicitor.

When you remortgage to a new lender, sometimes the lender gives the solicitor for free, sometimes they don't and you have to appoint one. They

- check the Land Registry title deed,

- when you own a flat, they would also check the property lease and some details with the freeholder/management company to ensure that the details are acceptable for the new lender

- on completion, they request a settlement statement from the old lender, the money from the new lender and any potential shortfall from you or if there's a surplus, they send it to the solicitor handling the purchase transaction

- after completion, they update the Land Registry, so the title deed shows the new lender instead of the old one

What does a surveyor do in case of a remortgage? Exactly the same as what they do for a purchase. They check the property's condition to make sure that it's worth what you say and that the property is acceptable for the new lender.

I hope the above clarifies the matter :)

Link to post
  • 2 months later...

Hi there,

Keen to understand the process/steps from switching residential mortgage to BTL, players and typical fees here.

Considerations I have so far:

  1. Conveyancer (Broker fee, application fee, lender fee, survey etc.)
  2. SDLT
  3. CGT
  4. Revisions for AST and landlord insurance

I may be overcomplicating matters, though it would be great to get confirmation/hear from others who have gone through the process.

 

Stay safe and Many Thanks!

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...