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just wandering?
suzy_g
Posts: 734 Forumite
to get a lower rate mortgage,could someone get away with saying, you wanted the mortgage for a house to live in it yourself, but instead rent it out,
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suzy_g wrote:to get a lower rate mortgage,could someone get away with saying, you wanted the mortgage for a house to live in it yourself, but instead rent it out,
Ask the question this way and it might become clear.
"Could someone get away with a fraudulent mortgage application to purchase a buy to let?"
Obviously the answer is yes but the penalties if you don't are likely to be severe.What goes around - comes around0 -
I know of people who buy a property and live in it for a few months then rent it out BUT they do tell the lender as soon as they rent it out and they do live in it for a while.
They are doing it to get around the 85% loan to value restriction and/ or the rental being at least 130% of the rental rules rather than to fraudulently getting a reduced mortgage rate.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
don't do it...be honest with the lender or you could end up in court. A friend of mine did it and did not tell the mortgage company but, of course they sent all correspondence to the mortgaged address and, not surprisingly ,got no reply or got the mail returned, can't remember which. The mortgage company demanded complete repayment of morgage immediately or repossession and threatened court action. Friend had to sell below market price, repay mortgage to avoid action for fraud...and now has trouble getting a mortgage.
It really is not worth itWombling £457.410
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