Buy To Let Mortgage Loophole!

rebl43

If you are in the armed forces and buy a property to let out, you dont have to have a Buy To Let mortgage as there is a loophole which means you can just have a regular mortgage.

We did it and our mortgage advisor told us that if we can say we intend to live in it eventually (ie when husband retires from the RAF) this is fine.

It only works though if you are living in forces accommodation and this (the new property) is the only property you own.

Not many people know this!
:A

regularsaver1

i believe you still need to let lender know if you rent it out though

flossy_splodge

Allegedly!!:rotfl:

AndrewSmith

regularsaver1 wrote:

i believe you still need to let lender know if you rent it out though

If you dont and the tennants burn it down, watch the solids hit the cooling system.

regularsaver1

yes but the first poster was making it sound like it was ok in that they could just get a residential mortgage and not really say anything
the intention to let needs to be made and an idicator would still be put on mortgage i'm sure

i'm just thinking cause i grant consent to lease to borrowers, some of those forces - they have to aply in exactly the same way where i work, but do not have to change their mortgage product, as others do

MikeLB

I dont think its as unique as you have been told I am afraid - I lease out my house this way as a Consent to Lease because I have bene unable to live in it for 4 years due to working away from home, but because I intend to live in it again, I am allowed to lease it out for the time being.

AndrewSmith

regularsaver1 wrote:

yes but the first poster was making it sound like it was ok in that they could just get a residential mortgage and not really say anything
the intention to let needs to be made and an idicator would still be put on mortgage i'm sure

i'm just thinking cause i grant consent to lease to borrowers, some of those forces - they have to aply in exactly the same way where i work, but do not have to change their mortgage product, as others do

You are correct, whichever lender you still have to gain permission to let.

rebl43

WOAH!
I was just letting people who are in a similar situation as me know about this - it's not top secret, but when I have mentioned it before to forces people, they were not aware of this.
I thought this was the whole point of these forums!

And yes, you do still have to let the lender know about the fact you are letting the property.