If I have a Current Account Mortgage (CAM) residential mortgage, and a buy-to-let mortgage (at a higher rate BTL rate), if I pay off my residential mortgage fully, will the rate on the BTL mortgage drop to ordinary residential rates?
My CAM mortgage is paying off very quickly, and could conceivably be paid off in the next couple of years.
Regards,
Robin
No. A BTL is a BTL. Nothing to do with whether you have another mortgage already.
Rob Graham
Correct. The higher rate on the BTL reflects the perceived greater risk to the lender. It is not some kind of "penalty" or lack of discount given to non-BTL borrowers. For instance you could have a residential mortgage for your main home and another one for a second home (e.g. holiday cottage), and provided you rent neither of them out, they can both be at the cheaper interest rate.
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