We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
New Mortgage
rfc195
Posts: 8 Forumite
Hi,
I'm in an unusual situation in that I'm a first time buyer about to buy a house which I intend to rent out for two to three years before moving in myself. I don't as yet have any tenants lined up. After telling this to two different mortgage brokers, they have said that I will not be able to qualify for a residential mortgage but a Buy to Let mortgage only. As I'm a first time buyer, there are not that many banks willing to give morgages on a buy to let basis, meaning my options are limited. I've been told by several people that I should go to a different broker and ask for a residential morgage (meaning possible lower interest rates) and not tell them about my plans to rent out, but I'm reluctant to do this because I'm wary of any possible consequences of being found out (although I admit I do not fully know what the consequences would be). Anyone have any ideas on what I should do?
I'm in an unusual situation in that I'm a first time buyer about to buy a house which I intend to rent out for two to three years before moving in myself. I don't as yet have any tenants lined up. After telling this to two different mortgage brokers, they have said that I will not be able to qualify for a residential mortgage but a Buy to Let mortgage only. As I'm a first time buyer, there are not that many banks willing to give morgages on a buy to let basis, meaning my options are limited. I've been told by several people that I should go to a different broker and ask for a residential morgage (meaning possible lower interest rates) and not tell them about my plans to rent out, but I'm reluctant to do this because I'm wary of any possible consequences of being found out (although I admit I do not fully know what the consequences would be). Anyone have any ideas on what I should do?
0
Comments
-
Take the advice of the brokers who correctly advised you to get a Buy to Let mortgage.
To apply for a residential mortgage to rent out would be fraud.
You would be in breach of the mortgage terms and would be uninsured for tenants. If you did insure for tenants the insurer would need to inform the mortgage company as they are an interested party and they would then be aware of it and could call in the mortgage.
Not worth the risk.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Many thanks for your reply. Now I know what to say to the people who have been "advising" me to go for a residential mortgage.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.6K Banking & Borrowing
- 254.8K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.2K Work, Benefits & Business
- 605.7K Mortgages, Homes & Bills
- 179K Life & Family
- 263.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards