Let to Buy

Posted on 17 March 2011 by Paul

I have a house on a normal owner/occupier residential mortgage. 

I am buying a new property as well, but given the current climate I cannot sell my current house. 

I am therefore thinking of renting it out.

My mortgage adviser says that as I had the mortgage in place years ago, that I don't need to tell the mortgage company that I will be renting it out.

In essence he says that I can have two residential mortgages at the same time.

Can I do this? Is he right? What are the consequences if he is wrong?


The situation you are in is now quite common and should not prevent you from getting a residential mortgage for your new property.

I can not agree with what you have been advised and whilst unlikely, the ultimate consequence of what you have been told is that you could lose your existing property for a breach of the mortgage conditions. You will also need to declare the existing mortgage to any new Lender and they are very likely to want to see either a Consent to Let or BTL mortgage offer before they can ignore the debt from their affordability calculations.

As independent whole of market mortgage brokers I believe you would benefit from speaking to one of our advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to advise you on the best way to approach your existing lender and look at your options for a new mortgage on the purchase.


Answers provided in response to Ask the experts 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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