ian Posted January 20, 2021 Report Share Posted January 20, 2021 we are thinking of moving back into our btl property. After speaking to our lender regarding how quickly we would need to convert the btl mortgage into a residential mortgage they said other than a breach on your account there is no other penalties or need to convert?? sounds strange. Anyone have any advice. Thanks Quote Link to comment Share on other sites More sharing options...
Richlist Posted January 20, 2021 Report Share Posted January 20, 2021 I have no experience of this but some points worth mentioning ...... * Interest rates on a BTL can be a little higher than a residential mortgage. So, putting any breach of mortgage terms aside for the moment.......it would make sense to do a back to back comparison to see which is cheaper. * You would presumably want to make sure that a breach of mortgage terms is not going to adversely affect any future insurance claim you may need to make......buildings, contents, unemployment insurance etc, etc. * You might also want to consider what would happen should your breach be discovered......would it affect your ability to make future mortgage applications ? I suspect the best choice will turn out to be a transfer to a normal residential mortgage. Quote Link to comment Share on other sites More sharing options...
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