Advice please: do mortgage lenders check electoral register regularly???

annlit

I am looking to remortgage and have been looking at 5-yr fixed rate mortgages so I know what I will be paying - however 5 years is a long time, and I don't know what I will be doing that far ahead. I am living there presently and have no plans for this to change imminently, but if I did decide to move in with my boyfriend, would the mortgage lender find this out? I know they check the electoral regsiter at application to check you live there, but would they do this sytematically thoughout the term of the mortgage, or would it just happen once?

It's difficult as I do need to remortgage but I certainly don't qualify for buy-to-let products as I live there, but at the same time 3 or 5 years is a big tie-in! I know the mortgage is portable, but unless my boyfriend and I intend to both sell our properties and buy one together (which is unlikely) then this facility isn't all that helpful.

Can anyone else experienced this? Do you know how often lenders re-check their information? Thanks, help much appreciated.

holly_hobby

ER is only checked at application stage.

If you decide to move in with your BF, and intend to let the property, you will need to obtain the lenders consent to let (as otherwise you will be in breach of your mortgage contract), and obtain landlord B&C. This arrangement is typically for a 3 yr period, but may be reviewed on a shorter period, and they may either leave you on the residential mortgage rate, or impose a loading - so your pay rate may well not be fixed at the 5yr rate you have currently selected.

If you don't intend to let, you would need to source a B&C provider (contents cover is discretionary) whom covers properties for periods of extended unoccupancy (extended classed as in excess of 30 days), as typical B (&C) policies would be invalidated on this basis. Again a condition of your mge is to always have appropriate buildings insurance in place - so this would need to be addressed in such a event.

Or, of course you could sell the property (which if within the product penalty period, will incur a ERP), or select a shorter term product.

Hope this helps

Holly