Consequences

Yazmina

What are the likely consequences of the bank finding out that I live in my btl flat?

What are the likely consequences of having a btl mortgage but having BI on the basis that I live there?

Cheers.

sophievenusdoom

Tricky...why are you hiding this from them?

Probably best to have one of the mortgage advisers stop by and answer this one me thinks!

Engeroosi

in my experience BTL mortgages are more expensive so I would imagine the bank won't be too worried, if I was you I would try change to a normal mortgage.

Yazmina

The btl fixed period ends in December 10. I cannot switch to a residential mortgage because the capital is over 4x my salary. I'm trying to think of a way round it so that I can move in.

Hump

Cases I've seen previously have resulted in the lender threatening the mortgagor with all kinds of legal action including repossession - though I'm not sure how they would find out unless you told them! Good luck.

PasturesNew

So long as you keep paying the mortgage, they don't need to know. They'll only get nosey if you default.

Yazmina

Ok, so I could probably get away with it with the bank, but what about the insurance? The policy currently states that the place is rented out. Won't it invalidate the policy if the owner is found to be living there?

Can I get away with telling the insurance people I live there but not tell the bank? If I made a claim + the two companies talk to each other, find a discrepancy will I be left with no insurance?

GMS

This could be classed as fraud.
You cannot get the mortgage on a residential basis due to income so you have a self financing Buy to Let. If you took it out on this basis it is fraud.
Your insurance is invalid as it is for a tenanted property not a residential. Changing the policy will mean the lender finding out as they have a notable interest in the property.
You should speak to the lender asap and try to find a resolution.
You are in breach of your mortgage conditions and as a result the lender could call in the mortgage if they wish. You have already said you cannot get a residential mortgage so you could be in a sticky situation.

Yazmina

Don't get me wrong, I didn't take out the mortgage/insurance with the intention of living in the property. I've never lived there it's always been let out, but I would now like to move in and am trying to make it possible.

GMS

Yazmina wrote: »

Don't get me wrong, I didn't take out the mortgage/insurance with the intention of living in the property. I've never lived there it's always been let out, but I would now like to move in and am trying to make it possible.

Speak to your lender and explain your situation.

Only way to find out for sure.