What do I do? I think I am totally screwed...

archie9uk

This is a long story, but I will be as concise as I can be...

In Feb 2008, I applied for a remortgage for my flat through my mortgage adviser, which was due to start in May 2008. This was a residential mortgage when I made the application, but I bought a new house and moved in April 2008. My mortgage adviser set me up a new mortgage for my house, and said he would change the mortgage for my flat into a buy-to-let mortgage. I have now found out that this never happened (when I rang the mortgage company to query why they sent my mortgage statement to the flat and not to my house). They said they have me on a residential mortgage and I need to reapply for a buy-to-let.

I am very worried that I will not be approved for a buy-to-let mortgage, as I have no equity, thanks to falling property prices. What on earth am I going to do?

boxer691

If this organisation gets a hold of this they will consider it dodgy and they will say that you are suspicious. The chances are you wont get a mortgage

jenny_13

Do you mean that you bought the house on a residential mortgage always intending to change to a BTL mortgage?

archie9uk

boxer691 wrote: »

If this organisation gets a hold of this they will consider it dodgy and they will say that you are suspicious. The chances are you wont get a mortgage

I'm not sure what you mean? I already have two mortgages, and have an impeccable payment history. I don't want another mortgage - I just want to keep paying the ones I have.

archie9uk

jenny_13 wrote: »

Do you mean that you bought the house on a residential mortgage always intending to change to a BTL mortgage?

No. I bought my flat to live in and two years later I remortgaged on a residential mortgage, with the intention of continuing to live there. Shortly after I made the application, but before the remortgage started, I bought a repossessed house (so it was a very quick purchase) which is now my home. I was told by my mortgage adviser that he was changing the mortgage for the flat to a buy-to-let, so I could rent it out. As far as I was aware, that is what he did (because he told me he had) but he obviously didn't....

VIGILANT22

What happened to the mortgage statement in Feb 2009?..where did it go?

jenny_13

archie9uk wrote: »

I'm not sure what you mean? I already have two mortgages, and have an impeccable payment history. I don't want another mortgage - I just want to keep paying the ones I have.

I think what he means goes back to my original question of did you always intend the property to be BTL even though it had a residential mortgage to start with.

In regards to your second post how did you apply was it through an independent mortgage advisor or your mortgage lender? Have you got anything in writing to prove that you asked for the mortgage to be changed to BTL?

firesidemaid

so, have you been renting it out?

i don't have any expertise i'm afraid. some lenders allow you to rent out on a residential mortgage, sometimes for a fee - others require you to have a BTL mortgage.

if you are renting it, do you have landlord's insurance? in theory you have to have your lender's permission to rent out.

VIGILANT22

firesidemaid wrote: »

Dont worry him anymore...he has to sleep tonight...:eek:

What's done is done....it's resolution time.....

archie9uk

VIGILANT22 wrote: »

What happened to the mortgage statement in Feb 2009?..where did it go?

It went to the flat, and my tenants must have thrown it away.

I didn't know when I was going to get a statement - whether it would be the start of the calendar year, the start of the financial year or the anniversary of the mortgage starting, so I didn't query it at the time. I did ring them in October, when all of the potential dates had passed, and I was told I wouldn't get a statement until I had had the mortgage for a full calendar year - i.e. I took the mortgage out in May 2008, so I would not get a statement until Jan 2010, one year and seven months later! I thought it was odd when that's what I was told, but the lady I spoke to was adamant that was the case.

archie9uk

jenny_13 wrote: »

In regards to your second post how did you apply was it through an independent mortgage advisor or your mortgage lender? Have you got anything in writing to prove that you asked for the mortgage to be changed to BTL?

It was through an independent mortgage adviser, linked to the estate agent I bought the property from two years earlier. I may have some written proof in my work emails (I will check tomorrow). By the way, the mortgage adviser also set up the residential mortgage on my house and the estate agent managed my flat for the first six months it was let out. Yet somehow they failed to notice that I didn't have a buy-to-let for the flat?!