Complete 2023 Guide.

Can i live in my
buy to let property

Can You Live In Your Buy To Let Property?

With life constantly changing, you may one day find yourself in need of a new home.

And if you’re fortunate enough to have a buy to let property, you may be tempted to temporarily stay in your rental home. But is this allowed?

In short: No, you cannot live in a rental property financed with a buy to let mortgage.

But why is this the case? Is it illegal to live in a buy to let property? What happens if you move into your residential property?

That’s what we’re here to find out. In this post, we’ll discuss the ins and outs of staying in your rental property, and the reasons you should avoid it.

So, keep reading for the answer to “can I live in my buy to let property?

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Is It Illegal To Live In A Buy To Let Property?

While it isn’t illegal to live in a buy to let property, you will encounter some issues if you’ve financed the property with a buy to let mortgage.

This is because buy to let mortgages have been specifically designed for landlords to rent to tenants and aren’t designed for people looking for somewhere to live like a residential mortgage.

The impact of this is that by moving into your buy to let, you may be breaking the buy to let mortgage agreement with your mortgage lender.

By doing this, you can set yourself up for trouble, with your mortgage lender potentially able to demand the immediate repayment of your mortgage loan.

What if Your Buy to Let Isn’t Financed With a Buy to Let Mortgage?

For rental properties that haven’t been purchased with buy to let mortgages, landlords are free to move into their homes as they fully own the property.

However, by doing this, you may be in breach of your tenancy agreement if the buy to let property is still occupied by your tenants.

As such, while property owners won’t be impacted by mortgage conditions, landlords will still need to comply with landlord regulations.

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What Happens if You Move Into Your Buy to Let Property?

While the answer to the question, “can I live in my buy to let mortgage property?” is no, you may feel tempted to move into your buy to let despite this. After all, how will anyone find out?

But there are some serious implications if you are caught living in buy to let property.

  1. Mortgage Fraud – If it’s proven that living in your BTL property has interest gains over a normal residential property of the same value, you may be committing mortgage fraud under the Fraud Act 2006. This could lead to jail time for up to 10 years.
  2. Rogue Landlord Database – For breaching your regulated buy to let mortgage terms, you could be put on the Rogue Landlord Database.
  3. Mortgage Repayment – Your mortgage lender may ask for the immediate repayment of the entire mortgage loan.

As such, by breaking your mortgage terms, you can scupper your chances of ever getting another bank loan or successful mortgage application, and can even land yourself with a criminal record.

That’s not to mention the financial implications of losing out on rental income without your tenants. Without rental income, you’ll have to front the bill of mortgage payments and other commitments yourself, which may be incredibly difficult.

To avoid all this trouble, you’ll need to switch your current mortgage to a residential mortgage.

You will need to speak to your existing lender about this, but you may encounter some difficulties. This is because not all mortgage lenders offer both buy to let and residential mortgages.

Be sure to seek financial advice and mortgage advice by talking to a mortgage advisor to see the latest options for your own financial situation.

Remember, though, while you may be tempted to just move in your buy to let, do so at your own risk as there are severe consequences of living in a buy to let property.

Can Family Live in Buy-to-Let?

Although the answer “can I live in my buy to let property UK?” is no, you may be wondering if family members can live in your buy to let property.

And while the answer is yes, a family member can live in your buy to let, you could encounter some issues.

Most lenders will likely see renting to a family member as a higher risk, and could even refuse to allow family or friends to live in the property.

This is because you could be more lenient to your tenants, and may be hesitant to chase after rental payments or may even charge them less.

As such, a mortgage lender could charge you a higher deposit, higher mortgage payments, or even refuse to lend.

To clarify this, be sure to talk to your buy to let mortgage lender to get the latest mortgage advice.

Want to learn more about buy to let property? View our complete guide.

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Frequently asked questions

No, you cannot be a tenant in your own investment property, and will be in breach of your mortgage agreement if you move in. The consequences of being caught living in your buy to let can be significant, with the potential to face up to 10 years in prison if you are found to be in breach of the Fraud Act 2006.

No, you cannot stay in your own buy to let as this would be in breach of the buy to let mortgage agreement. If you own the property outright and have paid off your mortgage debt, you can stay in your own buy to let.

Remember, though, you still have landlord responsibilities. By moving into a buy to let that is already tenanted, you will be in breach of your tenancy agreement.

No, you can’t move into your own rental property if you have used a buy to let mortgage to finance it.

Yes, a family member can live in your buy to let property. However, some mortgage lenders will have issues with this as you may be more lenient and charge your son/daughter less rent. As such, be sure to seek mortgage advice and talk to your lender to clarify.

No, you can’t live in a buy to let property even if it’s for a short basis. By staying in your buy to let, you will be in breach of your mortgage agreement and could be forced to repay the total cost of your regulated buy to let mortgage.

Yes, it’s possible to change buy to let mortgages to a residential mortgage. However, not all lenders will offer this, so you will need to talk to your existing lender to clarify.