Moving in to a buy to let flat

Boozer

Hello all

Wondering if you can give me some advice, i bought a flat 2.5 years ago on a buy to let mortgage, it was really the only option available to me as i am a non resident of the UK for tax purposes, i originally had to show the mortgage company who was renting it when they first moved in but since then they have never asked again.

The issue is that i am now moving my wife back to the UK and she will be staying in this flat, so i am wondering what possible consequences i may face.

Will i have to change the mortgage or do you think i can carry on with it as it is?? and if i do so and they find out, what may happen??

Any thoughts would be helpful.

Cheers

happybroker

as long as they are aware of what you're doing i don't see an isuue personally...obviously I've not seen your contract however.

herbiesjp

If you managed to get a BTL 2.5 years ago, you would have been able to get a mortgage as a foreign national.

Things have tightened up now, so whilst still possible, a lot harder.

Give your current lender a call to notify them your wife will be moving back in, as one of the terms of the mortgage may be that no memeber of family is allowed to stay there (being a BTL) - some lenders will be ok, but you need to find out.

What mortgage amount do you have? What property value is it?

herbiesjp

Was your adviser whole of market?

Based on that LTV you should have a couple of options.

I'd suggest getting a second opinion as this is not an impossible scenario

northerner79

Give your wife an ast if you are concerned about this!

Jonbvn

Boozer wrote: »

Property value 105K, mortgage left 37K, i contacted my IFA a few months ago to see if i could get a mortgage to get a bigger place but he really struggled to find anybody to take me as i am paid in dollars aswell, which just adds to the hassle, he found one but said that they did not take refferals and would have to contact them directly but i never did.

I was thinking along the lines that if the mortgage is getting paid each month then they will not really care.

thanks for taking the time to answer my question

Try this outfit for expat mortgages.
http://www.international-mortgage-plans.com/expat_mortgage_rates.htm

herbiesjp

northerner79 wrote: »

Give your wife an ast if you are concerned about this!

Not all lenders will agree to family in a BTL, as it becomes regulated.

Boozer

Yes i am sure there is something in there that i can not rent to friends or family, i dont have the paperwork near me so not 100%, but i was thinking if i was to give cash to a friend every month and he was to deposit it into my account, it would appear somebody is renting my flat, the mortgage is being paid so i dont see any problems with that, but the company might.

Another issue is that the fixed rate is up in April, going from 5.7% to 1.75% over base rate, so i would actually really like to keep this for now.

herbiesjp

Only the lender can tell you what their stance will be

silvercar

It seems far less risky for you and the lender to be occupying a BTL mortgaged property than have tenants in a residential mortgaged property.

What is the worst case scenario? The lender finds out and tells you to transfer to a residential deal or to move out and get a tenant. All the risks are your own, it is not as if you were putting a tenants home in jeopardy by your actions.

Boozer

Well the worst case scenario is kind of what i am asking about, as mortgages for me are pretty hard to come by, so if anybody had any experience of a similar situation i would appreciate it.

Dont really wish to phone the company and ask them as it may alert them to me doing something wrong, and then actually check up on me.