Changing a mortgage
mortgage guide

Changing A Mortgage To Buy To Let

There can be various reasons for changing a mortgage to buy let. Typically life takes a turn for better or worse and you find yourself needing to move location. Thankfully lenders often take a pragmatic approach to the situation and if there are sound reasons for needing to make the switch to a buy to let then it should be no problem as long as the mortgage application is handled well.

Each situation is unique but more often than not a mortgage underwriter will be considering the following:

  • What type of mortgage is already in place

  • Who currently lives at the property

  • Where will everyone live once the property is let

  • What is the underlying reason behind the need to switch to a buy to let

  • Is the property suitable for letting

  • Is the applicant in a strong enough position to manage a buy to let property

If you don’t plan to purchase another property to live in at the same time as moving out of your home (for example moving into rented accommodation, lodgings provided by an employer or with family/friends) then you may have a slightly harder time convincing a lender to help you. For example a lender may restrict how much they will lend you based on your income rather than the rental the property is expected to bring in. This is to protect themselves from a fairly uncommon scenario known as a ‘backdoor’ residential mortgage whereby a person raises more money than they should have been able to by using buy to let mortgage products but then moves into the property themselves (or never moves out). Due to this it is especially important to have a good relationship with the lender during the application process to ensure they have the full picture and feel your request comes from genuine intentions.

On the other hand if you will be purchasing a new property to move into then you can perform something called a let to buy. A let buy describes a situation whereby a property is flipped from being a residential home to a buy to let in order to allow for a new residential home to be bought and lived in. This has become a common request as people are less willing to sell their valuable property assets or have found it harder to sell them due to market conditions. You can check out our full let to buy guide for greater detail and try our let to buy mortgage calculator to work out if it could be a solution for you.

We are often asked this and the answer is always yes. If you have a standard residential mortgage in place then you are obligated to inform your mortgage provider if you wish to let the property. This usually results in one of two outcomes. Either the lender will offer some form of buy to let mortgage to switch to or they will ask that you switch your mortgage to a buy to let using another lender.

If you are changing a mortgage to buy to let then you need to think ahead and begin to consider yourself as a landlord. Contact some local letting agents who can give you an idea of how much rental income you could achieve as well what type of tenants to expect and even how you should try to furnish your property. If you are looking for more details you can read our full guide to buy to let.

The simplest solution is to get in touch with us and we can arrange your switch to a buy to let mortgage whilst finding you the best mortgage deal for the situation.

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