Switching to buy-to-let with HTB complications



New Member
Hi all,

Firstly, thank you for taking the time to read this. Appreciate the below is a bit of a brain spill!

I am currently awaiting a meeting with a broker, however, before getting carried away I thought it'd be best to discuss here to see if my plan is viable.

My partner and I are looking at getting our first play together, and given the recent SDT levy, it seemed like a good time to start looking.

I already own a residential mortgage under my name and am locked into a 5yr fixed mortgage with a help to buy equity loan of 20%.

Having just come into some money, my thinking is that I could transfer this product to a buy-to-let and benefit from rental income and wait for the flat to appreciate (new build) before I sell it.

The complications I have ran into are the following:
1. under the conditions of the HTB government equity loan, I am unable to 'sub-let' my flat and would have to repay the loan back before I can switch to a buy-to-let.
2. I am still 2 years into my fixed year term on my current mortgage (potential ERC's)

RE point number 1, my question is...
- Can I work with a broker to switch my product to a buy-to-let, and in the process release equity to pay of my help-to-buy loan? (+ potentially bolster our deposit for the mortgage)
- Whilst in the meantime of switching to buy-to-let, would I be able to apply for a residential mortgage with my partner without them (the lender) considering my current residential mortgage loan?

RE point number 2, my question is...
- I have been advised by Accord Mortgages that if I stay with the same lender that I would not incur an early repayment charge as I would be staying with the same lender. However, this was based on a general mortgage assumption... would the help-to-buy conditions complicate this at all?

Is there anything I have not taken into account in this equation?

Many thanks!!! appreciate any advice at all.


First of all, help to buy was never intended for the buy to let market so there is no way I can see you can use that particular scheme to bolster your plans for a buy to let investment. I assume that once you sell the property which is part of the help to buy scheme then the government loan is immediately repaid?

You mention releasing equity, what level of equity do you have in your existing property?

I could quite believe the mortgage lender waving any early repayment charges to keep your business whether this was a traditional mortgage or a buy to let transaction.