Fixed Rate Residential Mortgage to BTL

[Reece Corcoran]

Hi,

I am currently in the process of looking to move residential homes and would like to keep my current residential property as a BTL. I currently have a fixed rate mortgage with another 18 months left on the current property and I was wondering what would be my options/blockers for converting the fixed mortgage into a BTL?

Thanks,

Reece

[Stuart Phillips]

It all depends if you need equity out of the current property in order to buy the new one?

If so then you can look at porting the residential mortgage deal you have over to a new property, which avoids paying the ERC, but will likely leave you with a 2 part mortgage on mismatched end dates and you'll have to pay something at some point to get them back in line, be it an ERc or the SVR rate. You would then take a BTL mortgage on the current address to release the funds you need

You could pay the ERC now, and take a new residential mortgage on the new place and again remortgage to a BTL

Or, if you ont need to release equity, you get consent to let from the current lender, which is usually only valid until the end of the ERC period, and then remortgage to a BTL in 18m time. Having consent to let means the new lender will ignore your current mortgage commitment as they would if ther was a BTL mortgage in place.

 

Regards

[ketan]

On 11/30/2021 at 1:17 PM, reece corcoran said:

Hi,

I am currently in the process of looking to move residential homes and would like to keep my current residential property as a BTL. I currently have a fixed rate mortgage with another 18 months left on the current property and I was wondering what would be my options/blockers for converting the fixed mortgage into a BTL?

Thanks,

Reece

Hi Reece

You can ask your current lender if they will allow you to let out your property, and therefore will need a consent to let letter. If not then you can remortsge on a BTL mortgage but ofcourse there may be early repayment charges to pay on your current mortgage. 

Happy to help if you like. Ketan@unitefs.co.uk

Thanks