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England; I have a mortgage coming up for renewal in a few months. I bought the property about 7 years ago to live in it but my family outgrew it and we started renting a bigger house. I started paying the Buy to Let ("BTL") rate to my mortgage provider and started renting out my property.

I intend to talk to a mortgage advisor in a couple of months but if you could help me set my expectations that'd be great. Three questions:

  1. If I only have one property which I am renting out and I also renting myself, is there any way to NOT be considered a buy to let owner?
  2. Since I am worried about the potential impact to my finances can the mortgage provider block me from seeking an interest-only mortgage deal or prevent me from extending the term to make monthly payments more manageable?
  3. What costs should I be expecting from the mortgage advisor? A range would be great.

Thanks!

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  1. No. You are letting a rental property that you don't live in, therefore you are a landlord. It has a mortgage, so you are a buy-to-let owner. Your own living arrangements are immaterial.

  2. Mortgage providers can't block you from doing anything. They can only decline an application for whichever mortgage you've applied for. You are are of course free to apply for another one with them, or with a different provider.

    As for extending the fixed-rate term of the current mortgage: I couldn't say for certain, but I don't think that's likely, though there's no harm in asking. Generally your options are either to change the mortgage, or to keep the existing mortgage at the lender's standard variable rate, which is likely to be very high.

  3. Some cost you nothing. For example, L&C take their fee from the lender, not from you. Others charge you a fixed up-front fee, but will tell you this ahead of time. If your requirements are simple, one of the former may be sufficient.

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  • for the second part of (2) I think OP means "remortgage to a mortgage with a later end date than the current mortgage" (eg from a 10-year-remaining mortagage to a new 13-year mortgage) rather than trying to carry on on their current fixed rate (which I'm guessing is going to be much lower than anything available right now!)
    – AakashM
    Commented Oct 10, 2023 at 16:02

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