Switching a Property from Residential to Buy-to-Let
OR Vice Versa?
In our last article, we looked at a common question from UK expats: “Can I keep a property on a Buy-to-Let mortgage now and change it to residential when I return to the UK?”
The answer is often yes. And the reverse-changing your former UK home from residential to Buy-to-Let-is equally common. The key is understanding the lender’s rules and, importantly, when to make the change.
Leaving the UK? Residential to Buy-to-Let
If you move overseas temporarily, you may be able to ask your existing residential lender for Consent to Let. This can allow you to rent your home while keeping the existing mortgage and can be particularly useful for temporary overseas work placements.
However, Consent to Let is subject to the lender’s conditions and may have an expiry. If your overseas move becomes permanent, an Expat Buy-to-Let re-mortgage may become the better long-term solution. It can also provide an opportunity to release equity or switch to interest-only to reduce monthly payments.
Steven & Gurpreet’s Singapore Move
Steven and Gurpreet moved to Singapore eight months ago for what was originally a temporary work placement. When Steven’s position became permanent, they decided to rent out their UK home.
They had a £300,000 mortgage against a £550,000 property, but also wanted to release £50,000 to help with relocation costs and their children’s school fees.
We arranged a £350,000 Expat Buy-to-Let remortgage, including the £50,000 capital release, on a 2-year discount rate of 4.89% available at the time. We also arranged the mortgage on interest-only, keeping monthly payments lower and allowing surplus rent to build a reserve for maintenance and potential rental voids.
More case studies here
Coming Home to UK ? Buy-to-Let to Residential
What if you’ve lived abroad for several years and now want to move back into your UK Buy-to-Let property? Again, this can often be done-but timing can be crucial.
If you’re leaving your overseas job and returning to the UK without another job lined up, waiting until you’ve resigned could potentially make residential affordability more difficult.
It may therefore be worth exploring the change while you’re still overseas, employed and receiving your existing income. You also need to understand what your current BTL lender allows.
For example, one major expat lender allows borrowers who return to the UK and occupy their BTL property and to remain on their existing fixed, tracker or discounted deal until it expires. The mortgage then moves to its standard variable rate, with no further preferential products available.
Other lenders may take a different approach, including changing the rate or requiring a residential remortgage sooner. That’s why it’s worth speaking to your broker before moving back into the property rather than afterwards.
Best of Both Worlds: Use It and Rent It
Some expats want something slightly different: a UK property they can use when they’re home but rent on a short-term basis while they’re overseas. There are now mortgage options that can accommodate this arrangement, subject to individual lender criteria.
Greg’s London Base
Greg, an international business executive living in New Zealand, regularly travels to London for work and wanted to use his London apartment during those visits. He had an existing £400,000 BTL mortgage, but we sourced an expat residential mortgage of approximately £637,000-85% of the £750,000 property value releasing around £237,000, which Greg could put towards his new main residence in New Zealand.
Importantly, the lender was also comfortable, with Greg using the apartment for short-term/Airbnb-style letting when he wasn’t there, helping offset the cost of maintaining his UK property.
Your Mortgage Doesn’t Have to Stand Still
For expats, circumstances change. A temporary overseas contract becomes permanent, a former home becomes an investment, or a Buy-to-Let eventually becomes the home you want to return to.All can potentially be viable options. The important thing is understanding the lender’s criteria and planning the change at the right time.
Sometimes, acting before you leave-or before you return to the UK-can make a significant difference to the options available.
Why Advice Matters
At MyMortgageDeal, we specialise in helping UK expats and overseas investors access mortgage solutions that many mainstream banks simply don’t offer. Whether you’re a First Time Buyer, First Time Landlord, experienced investor or purchasing through a Limited Company, we’d be delighted to explore what’s possible.
As an expat you may be unsure what might be possible or what your next move should be and we are on hand to help explore the options available to you.
Market Updates
- The Private Renting Sector growing or declining?? this article may surprise some read it here.
- An £18.5m Stamp duty bill avoided – without saying too much, its interesting!… Read it here.
- Self managing your BTL and wondering if its worth the hassle – a great article from Rob & Rob on the pros and cons of managing BTL property Read it here.
- Deals of the Week: 3 Yr Discount Expat Residential at 4.52% to 75% and for Expat BTL – 5 yr fixed at 5.19% with Low fee, Free Valuation & Free Legals there are still some exceptional deals out there for expats. Enquire now
Next Steps…
Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.
A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.
Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymotgagedeal.co.uk