have tenants in my house but not told my mortgage provider

hellzbellz84

hi guys

I am a verrrry naive person and i own a house but due to work etc, i decided to rent my house out and move closer to london (my tenants pay £625 and my mortgage is £616). however i save a lot of money on travel. It has literally been thanks to this site that i have realised i have not told my mortgage lender i have tenants, they have been there for 5 months and i am terrifed about what to do. My mortgage is with Halifax and i let my house out through an agency, what should i do, shall i tell them immediately about what i have done? am i going to get into serious trouble? i am aware this is basically fraudelent, but the fact it is, is making me even more terrified in case they rack my rate up and i wont be able to pay my mortgage.

ANY HELP would be greatly appreciated.:(

2010

I would keep quiet and not mention it to Halifax, what they don`t know wont hurt them.

The banks are greedy enough without giving them even more money.
According to them it`s against there rules but if you pay a fat fee it`s OK.

Tell them nowt and also ignore the bizzybodies who`ll come out with all sorts of nonsense about why you should.

If the government, MPs, banks can all "fiddle" (bend the rules)

---

so can you.

dimbo61

Take out landlords insurance and make sure you have a gas safety check/certificate done plus EPC and electrical safety check

BoGoF

I assume you're declaring this income to the taxman ?

I'd be more worried about them than Halifax

2010

BoGoF wrote: »

I assume you're declaring this income to the taxman ?

I'd be more worried about them than Halifax

There is no income to declare after taking out expenses such as mortgage repayments and other allowances a "landlord" can claim.

BoGoF

You can only deduct mortgage interest as a deduction not any capital repayments.

real1314

2010 wrote: »

There is no income to declare after taking out expenses such as mortgage repayments and other allowances a "landlord" can claim.

Do not give people misleading advice that can lead to serious consequences for them. You have no way of knowing whether the OP has any tax liability.

OP, you need to get your act together, you are potentially exposing yourself to charges of mortgage fraud, tax evasion and criminal charges if you do not have gas safety certificates and something goes wrong.

If you can't find your own way through all the regs (which seems to be the case) then join a landlords association. :cool:

TEDDYRUKSPIN

real1314 wrote: »

Do not give people misleading advice that can lead to serious consequences for them. You have no way of knowing whether the OP has any tax liability.

OP, you need to get your act together, you are potentially exposing yourself to charges of mortgage fraud, tax evasion and criminal charges if you do not have gas safety certificates and something goes wrong.

If you can't find your own way through all the regs (which seems to be the case) then join a landlords association. :cool:

So much scaremongering.

Did'nt the person in question just tell us that they are using an agency? Therefore, the agency should have notified him of all legal registrations requestion i.e. gas safety, electrical etc etc.

As for the halifax thing. The real thing you will have to note is that you must have the correct building insurance in place.

Also nowadays, you must have the right tax submitted. Good luck. It is'nt that difficult than everyone thinks.

MissMoneypenny

dimbo61 wrote: »

Take out landlords insurance and make sure you have a gas safety check/certificate done plus EPC and electrical safety check

Good luck trying to get insurers to pay out on a claim if you don't have the mortgage lenders Consent to Let. The insurers take your money, but getting them to pay out is another matter.

If the mortgage company finds you are letting without their consent, they can recall your mortgage: more likey they will just put an instant interest rate rise on your mortgage.

Morally: you have put your tenant and their family in a very poor position.

Financially: no pay out on an insurance policy and a higher interest rate to pay. Tenant can sue you (and the agent) if things take a turn for the worse.

Getting the mortgage lenders permission can work out a lot cheaper.

MissMoneypenny

TEDDYRUKSPIN wrote: »

So much scaremongering.

Did'nt the person in question just tell us that they are using an agency? Therefore, the agency should have notified him of all legal registrations requestion i.e. gas safety, electrical etc etc.

The landlord is responsible for all the legal requirements, even if they use an agent. Anyone can be a letting agent as the law doesn't require them to have any training or knowledge about lettings.

The fact the agency didn't check for something as basic as proof that the OP had Consent to Let, makes one wonder what else they have forgotten to do.

mynameisdave

2010 wrote: »

Tell them nowt and also ignore the bizzybodies who`ll come out with all sorts of nonsense about why you should.

If the government, MPs, banks can all "fiddle" (bend the rules)

---

so can you.

So in your imagined fictional battle to with the powers that be you're going to walk all over the rights of tenants to? Top bloke you are, although you're advice is less so.

dimbo61 wrote: »

Take out landlords insurance and make sure you have a gas safety check/certificate done plus EPC and electrical safety check

Will be difficult to get insurance without the lender knowing whats going on. I am fairly sure you need to declare interested parties, ie the mortgage lender, if you are taking buildings insurance.

As for the rest of the stuff yes, good advice.

TEDDYRUKSPIN wrote: »

So much scaremongering.

Did'nt the person in question just tell us that they are using an agency? Therefore, the agency should have notified him of all legal registrations requestion i.e. gas safety, electrical etc etc.

As for the halifax thing. The real thing you will have to note is that you must have the correct building insurance in place.

Also nowadays, you must have the right tax submitted. Good luck. It is'nt that difficult than everyone thinks.

The agency is paid to do stuff for them, not to absolve the LL of all his responsibilities. If he doesn't cover his !!!! his can still be busted. Then he can go about chasing the agency for not doing their job properly as a seperate issue.

~~

Letting agent sounds poor, to be honest. as said above not checking basic stuff like consent to let suggests there is much else they are not doing.