Planning to let a property to a family member?
Who will live in the property can change the mortgage route. If your child, parent or another relative will be the occupier, tell us before you apply. We can help you establish the right questions to ask and whether Count Ready can advise on the borrowing you need.
When might a family let need a regulated mortgage?
A mortgage secured on a dwelling intended for occupation by the borrower or a related person may fall within the regulated mortgage contract rules rather than the ordinary business buy-to-let or consumer buy-to-let route. The legal position depends on the agreement, the borrower, the property, its intended use and any applicable exclusions. “Regulated buy-to-let” is a common market description, not a product or approval guarantee.
The FCA Handbook explains the regulated mortgage contract definition. Its list of related persons includes a spouse or civil partner, a person living with you as a spouse or civil partner, a parent, brother, sister, child, grandparent or grandchild. Other relationships should not be assumed to fit the same definition. Tell the adviser exactly who the intended occupier is.
There is a useful distinction: consumer buy-to-let is a separate category concerned with the purpose of a buy-to-let agreement. It should not be used as a catch-all label for renting to family. If you are comparing a new loan on a property you already let, also read our buy-to-let remortgage guide.
Which situation is closest to yours?
Your child or parent will rent the property
Set out the relationship, who owns the property and whether you will live there. Standard buy-to-let terms may not allow the proposed occupation. The adviser must check the appropriate mortgage route and current lender availability.
You will live there as well
This may be closer to residential borrowing, even if you intend to receive rent for a room or part of the home. Explain which part each person will occupy and what your present lender permits.
An unrelated tenant will live there
Family-occupation rules may be beside the point. If you inherited the property or previously lived in it, its history and your reason for borrowing can still matter. See our consumer buy-to-let explanation.
The occupier or property use is changing
Contact the existing lender before a new occupier moves in or you change the use of the property. Do not assume the present mortgage permits the change, or that its regulatory classification automatically changes after it was made.
What information shapes the mortgage route?
The legal category, the lender’s current criteria and whether you can afford the borrowing are separate questions. No single deposit percentage, rental multiple or accounts rule applies to every case.
People and property
- Borrower, owner and intended occupier, including their exact relationship.
- Whether the borrower will occupy any part of the dwelling.
- Present and proposed use, including the likely tenancy arrangement.
- Property type, value and existing mortgage conditions.
Borrowing and affordability
- Purchase or remortgage purpose, loan amount and available deposit or equity.
- Income, commitments, credit history and expected rent where relevant.
- Any early repayment charge, product fee, valuation or legal cost.
- Documents a lender requests after the right route is identified.
Before the first call, a short outline is enough: who is involved, what you want to do, the property value and approximate loan. If an application is suitable, evidence may include identity, income, mortgage statements, property details and information about the proposed letting. Ask for a secure way to provide sensitive documents; they are not needed in an initial callback request.
For broader product checks, see our buy-to-let mortgage criteria guide. Its general criteria do not replace a family-occupation assessment.
How Count Ready can help you take the next step
Tell us who will live there
We start with the borrower, the occupier, their relationship, the current mortgage and the borrowing you want.
Confirm the service and fees
We discuss the possible mortgage category, whether we can advise on it and the current criteria that need checking. We confirm any applicable fee before chargeable work.
Prepare lender evidence
If a suitable route is found and you wish to proceed, we explain the application, required documents and lender decision process.
Know who you are dealing with
Count Ready Limited describes itself as an appointed representative of Connect IFA Limited. Its Terms of Business explain the advice service, published fees and lender commission. Check the FCA Register guidance and ask Count Ready to confirm its role and the scope of service for your particular family-occupation case. Advice does not guarantee a mortgage offer.
Family buy-to-let mortgage questions
Can I use an ordinary buy-to-let mortgage if my child will live there?
Do not assume so. A proposed let to a child can affect the legal and lender route. Tell the adviser and lender who will occupy the property before applying, and check the current product terms.
Is a regulated family let the same as consumer buy-to-let?
No. Consumer buy-to-let concerns whether a buy-to-let agreement is entered into wholly or predominantly for a business purpose. Occupation by the borrower or a related person can take the agreement outside that buy-to-let definition. The facts of the proposed agreement must be checked.
What if I intend to live in part of the property?
Explain the arrangement before applying. Borrower occupation can point towards a regulated residential mortgage route, while the lender will also consider the property and proposed letting. Renting a room does not automatically make an ordinary buy-to-let product suitable.
What if the family member later moves out?
Tell your lender about the change and check its terms before replacing the occupier or changing the use. A later change does not, by itself, rewrite the legal classification of the original agreement; a new borrowing proposal needs its own assessment.
How much deposit or income evidence will I need?
That depends on the mortgage route, lender and your circumstances. Be ready to explain the proposed loan, value or equity, income, commitments and expected rent where relevant. The adviser can explain which documents a lender currently requires after your route is clear.
Talk to us before a family member moves in
Tell Count Ready who will own and occupy the property and what mortgage you have or need. We can discuss the next check, the advice service available and any fee. An initial conversation is not an eligibility decision or a promise that a lender will accept an application.
Your property may be repossessed if you do not keep up repayments on your mortgage.