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Am I required to state why I'm remortgaging?


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We remortgaged our home a few years ago and I seem to recall that we were expected by the new lender to give a reason why. As their interest rate was much lower than our existing one at that time then the reason was pretty obvious.


But am I required to give a reason for remortgaging? If so, what if I change my mind after receiving the excess funds (if any) and use the money for something else?


The reason for asking is because I'm interested in remortgaging to raise a deposit for a BTL property. Would a lender take a negative view of this? What if I said I was using the money to, say, do some home improvements, but then used it for a BTL property deposit instead, without informing the lender? Could they take some kind of action against me?


Obviously I'd much rather be up front about I would be using the funds for.


Any advice appreciated.





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If you lie you are commiting mortgage fraud. Most lenders accept BTL investment as a reason to remortgage. Easy to check before you apply.

Regards Simon

Searchlight Finance Ltd

T:01565 654005


Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

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The mortgage lender would be pleased you are using the fund to create an investment that should give you positive cash flow.

If you look at it from their perspective, the risk if you defaulting on the loan is lower if your income goes up after taking out the loan. So buying a btl is a better option for them than say home improvements or buying a car, these don’t create cash flow. They are probably where people spend most remortgages.


I’ve remortgaged my house 3 times over the years to raise funds for BTL. I’ve told them in every case that is my intention. They have never had an issue.


ive also remortgaged btl property to buy btl property many times. Also not an issue. Also I’ve done this with about 8 different lenders.


My advise is just do it.



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I did exactly this last year. I was with Nationwide before and they weren’t happy about my reason to remortgage, but I am now with Santander and they were happy with it.


i think it just depends on the lender and their criteria, so best to work with a broker and find a lender you can be honest with.


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I did that with Halifax and they were happy with it. The mortgage advisor even told me I could borrow more. I think when you do it like that you could also deduct the interest paid on the deposit amount when you do your account on the BTL - I'm not an accountant though, so please correct me if I'm wrong.


Bear in mind, I've been told Halifax is one of the best lenders around by both mortgage advisors I went to (rate not so competitive but good lender to deal with)


Looking to do the same with Santander and fingers crossed it'll be the same.

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On 11/2/2017 at 3:28 PM, paddyr said:

Hi RogerH

As you probably know Residential mortgage rates are better/lower than BTL rates/products.

I am a Residential Mortgage Advisor, Whole of the Market, happy to give Fee Free advice/service.



Paddy, Would it be OK to message you directly with a question or two?


Thanks, Roger

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