The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

Depending on various factors, including your personal situation and your mortgage lender, a change to a buy to let mortgage might be feasible.

This can happen if you decide to change your living conditions, for example, by moving in with a friend or a partner who owns a property, opting for a rental accommodation, or purchasing a new dwelling for yourself.

At the same time, you might choose to retain your current home, converting it from a residential to a buy to let property, and thus becoming a landlord – a decision often providing a supplemental income for many.

How to change your mortgage to buy to let?

The process of changing your mortgage to a buy to let involves talking to your lender, as initial approval from them is crucial. Following that, consulting with a reliable mortgage broker will be beneficial as you would essentially be remortgaging your property to change the type of mortgage. Whether you continue with your existing lender or move to a new one, a proficient mortgage advisor in Manchester can guide you to a suitable deal.

Remortgaging becomes essential as the terms of your original agreement undergo a change. The approval for a buy to let mortgage entails more than just the lender’s acceptance; you will need to meet their stringent criteria.

What criteria do I need to meet to change my mortgage to buy to let?

The conditions to be satisfied for changing your mortgage to a buy to let involve staying on your residential mortgage for a minimum of six months, post the change. Multiple factors are then taken into consideration such as the affordability entirely built upon rental prospects of your property, equity availability in your home amounting to at least 20-25%, a clean credit history, and the type of property you own. You must also have prior landlord experience as some lenders may not consider first time landlords, although there are alternative solutions available.

Can I live in my buy to let property?

Living in your own buy to let property can lead to a violation of your mortgage terms and serious repercussions. If you plan to rent out your present property to buy a new dwelling, this is termed as a let to buy mortgage in Manchester, which might be a plausible choice for individuals seeking an income boost while moving to a different location.

How many buy to let mortgages can I have?

The number of buy to let mortgages an individual can hold is not distinctly limited but will be determined based on the lender’s evaluated risk. To understand better, consider consulting a dedicated mortgage advisor.

An option of ‘consent to let’ might be open to some homeowners, generally used for short-term purposes, where your property is temporarily classified as a buy to let in Manchester. However, restrictions are applied by the lender.

To gain more insights on converting your residential property into a buy to let, feel free to book a free consultation with our qualified specialists. They can assess your situation, provide advice, and detail the accessible deals for you.

Date Last Edited: February 15, 2024