Mortgages for those serving in the forces

mikeandtango

Hello,

I am in a similar situation as I am posted away from my house and am about to try and let it. Our mortgage company is telling me i must change to a buy-to-let mortgage, which is significantly more expensive (approx increase of £250 per month!).

A few here have mentioned some legal stuff, does anyone have an actual reference or document that proves this? My partner and I are about to go back and try and negotiate with the Mortgage company to try and stay on our residential rate.

neil9313

mcwarre wrote: »

That's good news.

BTW. By law Banks / building societies cannot penalise you for being in the Forces by charging you a buy-to-let rate. This is little known and something that they will probably deny but when pushed they cannot penalise you. So stick up for your rights and get a residential mortgage

what aload oftosh yet again ! :rolleyes:

Renovatio

rebl43 wrote: »

Hi, just to add that Abbey gave us a residential mortgage while we were already letting it- I think it must vary depending on which mortgage advisor you speak to.

Exactly the same situation for me.

I re-mortgaged for an Abbey residential one, with Abbey aware i currently had tenants with a consent to lease on a standard life residential mortgage (standard life charge for it though!). Once the mortgage completed with Abbey, their consent to lease was given for free through the Milton Keynes department.:T

Marker_2

neil9313 wrote: »

what aload oftosh yet again ! :rolleyes:

What do you mean by that?

N79

C&G allowed us to let out the property that we lived at in the UK on a residential mortgage while I am serving overseas.

mi33cupc@ke

mikeandtango wrote: »

Hello,

I am in a similar situation as I am posted away from my house and am about to try and let it. Our mortgage company is telling me i must change to a buy-to-let mortgage, which is significantly more expensive (approx increase of £250 per month!).

A few here have mentioned some legal stuff, does anyone have an actual reference or document that proves this? My partner and I are about to go back and try and negotiate with the Mortgage company to try and stay on our residential rate.

I too would like to know this. We let our house out on a residential mortgage with consent to let from Northern Rock. When we sold it and bought a new house which we again let out we were told we HAD to then get a buy to let mortgage! I would love to be able to go back to them with something to back my argument.

MRSMCAWBER

Hi

We took out our mortgage with the Halifax -after being told that they don't see members of the forces as "buying to let" if it is just 1 house they own..
We took out the mortgage when hubby was in his final 2 years -planning on moving in there, but he has now extended for 5 years -so the house is still let..
When we were asking about it initially the biggest difference we were infomed of was that if we went somewhere that saw it as a buy to let mortgage then we would need at least 15% deposit

Cat695

on doing a little research into this it seems that the banks etc don't have to do this for you.....but most will (might be worth saying this bank will do it why don't you etc)

what about your admin office the RAOWO maybe able to offer some help in shedding light on which banks will do this

ask friends etc or ring up one of the mortgage advisors that is advertised in the forces discount book as they could shed more light

mikeandtango

Hello all,

thanks, some good advice there and most importantly information on other lenders that support this situation (I shall be quoting them in my letter to the Chelsea).

I will let you know if Chelsea do not allow me to stay on our residential rate! My boss at work (Lt Col) advised me to go the media and publicise that the Chelsea are anti-armed forces and hope that market/media pressure could force them to relent!

I think it will be worthwhile to publicise this amongst the Forces a bit more. I intend to write in to Soldier Mag and post on the ArmyNet forum as I feel strongly that we must support those lenders who are understanding of our unique situation!

REgards to you all.

Alias_Omega

Some interesting information here..

Going to make it a sticky for the time, feel free to comment..