UK Landlord Forum / Life

Has anyone ever considered declaring a buy-to-let property as a residential property to benefit from cheaper mortgage rates? I know a lot of landlords do it, and brokers are willing to go along with it (they just play dumb). It could save you thousands in the longrun, but the risks scare me a little.

Firstly, the main risk is the conflict with the property insurance policy. If I don't declare my property as a buy-to-let with my insurer, my policy becomes void i.e if my house burns down, I wouldn't get a penny. If I declare my property as a buy-to-let and my house burns down, my insurer will talk to my lender and see the conflict- the insurer will see a buy-to-let property on the records and the lender will see a residential mortgage...

I do know of people who have a  declared property as resy and let it out and have a valid LL insurance that pleases the property lender.
I think its all about how you word things in legal docs, thats the trick.