Can You Change from a Buy-to Let Mortgage to a Residential Mortgage?

Answered on 26 March 2024 by

I currently own a buy-to-let that I want to move into. Can I remortgage my buy-to-let to a residential mortgage?

Nick Mendes

Remortgaging Buy-to-Let to Residential

Yes, it is possible to switch from a buy-to-let mortgage to a residential mortgage. Whether you’re able to do this will be subject to you meeting the lenders current residential affordability criteria. You can approach your existing lender to see if they will grant permission, however if they can't / won't allow this, then we can look at alternative lenders to help you.

If you’re thinking about switching from a buy-to-let to residential mortgage, then you should keep the following considerations in mind:

  1. Lender Policies
    • Not all lenders may allow you to switch from a buy-to-let mortgage to a residential mortgage. Some lenders may have specific policies or restrictions regarding this type of switch. It's essential to check with your current lender or shop around with other lenders to find out their policies on switching mortgage types
  2. Eligibility Criteria
    • Lenders typically have eligibility criteria that borrowers must meet to qualify for a residential mortgage. This may include factors such as your income, credit history, employment status, and the property's suitability for residential use. Make sure you meet the lender's criteria before applying for a residential mortgage
  3. Financial Assessment
    • When switching from a buy-to-let mortgage to a residential mortgage, lenders will assess your financial situation to ensure you can afford the residential mortgage payments. This may involve providing documentation of your income, assets, and financial obligations
  4. Property Use
    • Residential mortgages are intended for owner-occupied properties, so the property must be suitable for residential use. If the property was previously rented out as a buy-to-let investment, you may need to provide evidence that you intend to live in the property as your primary residence
  5. Property Valuation
    • The lender may require a new valuation of the property to determine its current market value and suitability for a residential mortgage. The valuation may also help determine the maximum loan amount and interest rate for the residential mortgage
  6. Legal and Administrative Processes
    • Switching from a buy-to-let mortgage to a residential mortgage involves legal and administrative processes, including updating legal documents, transferring the mortgage loan and potentially paying any applicable fees or charges. It's essential to follow the required procedures and seek professional advice from solicitors or conveyancers to ensure that the switch is conducted properly
  7. Early Repayment Charges
    • If your buy-to-let mortgage has an ERC (early repayment charge), you may need to consider the cost of paying off this charge when switching to a residential mortgage. Some lenders may waive or reduce ERCs in certain circumstances, so it's worth checking with your lender

Switch from Buy-to-Let to Residential Summary

Before switching from a buy-to-let mortgage to a residential mortgage, carefully consider your reasons for making the switch, assess your financial situation and explore the options available to you. Consulting with one of our experienced mortgage advisers who can help you make an informed decision and navigate the process effectively.

If you'd like to discuss your options in more detail, then please contact one of our consultants on 0330 433 2927 and they'll be able to give you a clearer idea of how we can assist you.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.


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