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    • Thbm
    • By Thbm 19th May 17, 6:51 AM
    • 6Posts
    • 1Thanks
    Thbm
    Need help with BTL mortgage
    • #1
    • 19th May 17, 6:51 AM
    Need help with BTL mortgage 19th May 17 at 6:51 AM
    Currently in the process of switching my mortgage to a BTL however I have a tenant in place. Have not informed lender as would be classed as unauthorised letting? Or would it? They now want to see my bank statement which shows my rent going in.
    Want to be right by everyone but always a stumble. Also in process of purchasing 2nd house to live in. Didn't tell them 🙈 they also said under there terms the tenant must be working. She's not! And I cannot kick her out. She's a carer for her son.
    Any advice please. New to this.thanks.
Page 1
    • ACP021
    • By ACP021 19th May 17, 8:05 AM
    • 7 Posts
    • 1 Thanks
    ACP021
    • #2
    • 19th May 17, 8:05 AM
    • #2
    • 19th May 17, 8:05 AM
    You might want to post this thread on the Mortgage boards as there are experienced people there that can help
    • AdrianC
    • By AdrianC 19th May 17, 8:13 AM
    • 13,953 Posts
    • 12,351 Thanks
    AdrianC
    • #3
    • 19th May 17, 8:13 AM
    • #3
    • 19th May 17, 8:13 AM
    You have a tenant already, but no consent to let? Yes, your existing lender will regard that as a breach of your agreement.

    You're buying an additional property, but are lying to your solicitor about your existing property? Presumably, to "save" on SDLT...? Or lying to the lender...?
    • Thbm
    • By Thbm 19th May 17, 8:16 AM
    • 6 Posts
    • 1 Thanks
    Thbm
    • #4
    • 19th May 17, 8:16 AM
    • #4
    • 19th May 17, 8:16 AM
    Solicitor is aware of my other property. They're not concerned. Sorry what is SDLT?
    • LdnFtB
    • By LdnFtB 19th May 17, 8:19 AM
    • 14 Posts
    • 5 Thanks
    LdnFtB
    • #5
    • 19th May 17, 8:19 AM
    • #5
    • 19th May 17, 8:19 AM
    Oh blimey. Stamp Duty Land Tax - you'll be paying an additional 3% on top of the usual stamp duty as you're buying a second home.

    Are you aware of Section 24?
    • TonyMMM
    • By TonyMMM 19th May 17, 8:20 AM
    • 2,333 Posts
    • 2,455 Thanks
    TonyMMM
    • #6
    • 19th May 17, 8:20 AM
    • #6
    • 19th May 17, 8:20 AM
    Sorry what is SDLT?
    Originally posted by Thbm
    Stamp Duty Land Tax ... which you will be paying at the higher rate on your second property.
    • Thbm
    • By Thbm 19th May 17, 9:13 AM
    • 6 Posts
    • 1 Thanks
    Thbm
    • #7
    • 19th May 17, 9:13 AM
    • #7
    • 19th May 17, 9:13 AM
    Oh yes I'm paying this on 2nd property.
    • 00ec25
    • By 00ec25 19th May 17, 10:18 AM
    • 3,864 Posts
    • 3,089 Thanks
    00ec25
    • #8
    • 19th May 17, 10:18 AM
    • #8
    • 19th May 17, 10:18 AM
    so is your question:
    - I have successfully committed mortgage fraud so far, will I be caught if I carry on and lie again to my existing lender?
    or
    - can I use a broker to see if there is a new lender who will accept my circumstances?
    • G_M
    • By G_M 19th May 17, 11:24 AM
    • 39,215 Posts
    • 44,558 Thanks
    G_M
    • #9
    • 19th May 17, 11:24 AM
    • #9
    • 19th May 17, 11:24 AM
    Currently in the process of switching my mortgage to a BTL however I have a tenant in place.
    Oops!
    Have not informed lender as would be classed as unauthorised letting?
    Why the question mark? Yes, it's unauthorised letting.
    Or would it?
    Errrrr.... Yes.
    They now want to see my bank statement which shows my rent going in.
    oops again. They are going to spot that.

    Want to be right by everyone but always a stumble.
    Pity you didn't want to be right by everyone from the start. However......
    Also in process of purchasing 2nd house to live in. Didn't tell them
    Oops.

    🙈 they also said under there terms the tenant must be working.
    They can only require the tenant to be working at the time the tenancy is created. You cannot control what your tenant does once in occupation.
    However in this case (I assume) your tenant was not working from the start

    She's not! And I cannot kick her out. She's a carer for her son.
    Originally posted by Thbm
    Well, depending on the tenancy terms you could consider evicting, though I agree that's pretty tough on the tenant (who is an innocent party). But anyway, your rent statements would still show the rent, depending how many the lender requests and how long you wait after evicting before sending in statements.


    You have 3 optons:

    1) Come clean
    Contact the lender, explain the full situation, and hope they allow you to switch to BTL with the existing tenant.
    You might want to share the lender's name and see if people here, or on the mortgage board, know how flexible/sympathetic that specific lender is

    2) Keep quiet
    Stay on current residential mortgage and hope no one finds out

    3) Apply and keep fingers crossed
    Proceed with your application without mentioning the tenant, hope they don't spot the rent payments on your statement, and fingers crossed
    • movilogo
    • By movilogo 19th May 17, 11:39 AM
    • 2,245 Posts
    • 1,506 Thanks
    movilogo
    Lenders don't visit houses to see if already tenanted. Just ask the lender to change to BTL mortgage (your rates may go higher but may allow same rate for 12 months) - this is not a big deal.

    But you have messed up receiving rent in same bank account. This VERY LIKELY to be flagged up if you show this statement to your lender for 2nd property.
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
    • G_M
    • By G_M 19th May 17, 11:44 AM
    • 39,215 Posts
    • 44,558 Thanks
    G_M
    But you have messed up receiving rent in same bank account. This VERY LIKELY to be flagged up if you show this statement to your lender for 2nd property.
    Originally posted by movilogo
    Is it the lender for 2nd property who has requested the statement, or is it part of the BTL application for the tenanted property?

    (or both?!)
    • Cakeguts
    • By Cakeguts 19th May 17, 12:06 PM
    • 2,277 Posts
    • 2,876 Thanks
    Cakeguts
    What kind of insurance do you have? You need public liability insurance for let properties. It is to protect you if a tenant injures themselves at your property. The insurance usually covers you for several million pounds. You can usually buy special landlord type insurance for a rental property.

    You aren't doing very well at the moment. So far you have broken all the rules set out by your mortgage lender and you are worried about the new lender seeing the rent going into your account. You don't seem to be a good risk to me.
    • Crashy Time
    • By Crashy Time 19th May 17, 1:16 PM
    • 4,027 Posts
    • 1,939 Thanks
    Crashy Time
    http://www.mortgagesforbusiness.co.uk/news-insight/2015/july/how-the-restriction-of-relief-on-btl-mortgage-interest-will-affect-landlords/
    • Crashy Time
    • By Crashy Time 19th May 17, 7:21 PM
    • 4,027 Posts
    • 1,939 Thanks
    Crashy Time
    What kind of insurance do you have? You need public liability insurance for let properties. It is to protect you if a tenant injures themselves at your property. The insurance usually covers you for several million pounds. You can usually buy special landlord type insurance for a rental property.

    You aren't doing very well at the moment. So far you have broken all the rules set out by your mortgage lender and you are worried about the new lender seeing the rent going into your account. You don't seem to be a good risk to me.
    Originally posted by Cakeguts

    Surely all this is a deal breaker for the new lender?
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