HMO Mortgage breach

david3331

I was reading my mortgage agreement last week and I found that:

Special conditions:

The property must no be a house of multiple occupation as defined in Section 345 of the Housing Act 1985.

I Applied for a houses of multiple occupation license last year and I am on the final step of negotiations with the council to get the license.

The Council shipment The lender a draft license last month.

I have to remortgage in December this year so still 8 month away.

Any sugestions will be very apreciate.

My mortgage is a btl
The lender want just one household and not multiple

Mr_helpful

Will the lender know?

MortgageMamma

Its a breach of a mortgage deed and should be considered carefully before you do anything you know you shouldnt. Are there any early repayment charges on the mortgage

david3331

Thelender knows becousemy council has sent a draft license.
early reapyment 11000 paunds

MortgageMamma

Perhaps one thing you could do is get in touch with the lender and try and renegotiate a slightly higher rate to cover the risk until you can remortgage away to another lender. failing that keep the occupancy just under the HMO limits for 8 months. If you breach your mortgage deed, and your lender in this case has been tipped off so to speak so may check, then the lender can demand full repayment of the mortgage AND the early repayment charges, and for the sake of losing a bit of money for a few months its hardly worth the risk. Renegotiate or play by the rules I say.

toonfish

who is the current lender?

Mr_helpful

If your license is going at the same speed mine is your redemption will be long gone by the time you get the license. I was told I was getting mine in November last year but not heard anything from thm since.

EdInvestor

Mr_helpful wrote: »

Will the lender know?

Dear me Mr Unhelpful, and there I was thinking you were such a man of principle, so censorious of anyone who might try to take advantage of a financial institution's unfortunate inability to defend a misselling claim.

And yet here you appear to be suggesting a borrower should break the terms of his mortgage contract.

Posters should use caution when evaluating the possible downsides of Mr Helpful's suggestions IMHO.

Mr_helpful

Missed again Ed
A lesson in English.
When a sentence ends with a ? it is not advice but a question. My sentence ended with a ?
When someone asks for advice and you answer with information it is advice and you advise people to use loophole to say a policy was mis sold when it probably wasnt

AndyWallace

Mr_helpful wrote: »

Missed again Ed
A lesson in English.
When a sentence ends with a ? it is not advice but a question. My sentence ended with a ?
When someone asks for advice and you answer with information it is advice and you advise people to use loophole to say a policy was mis sold when it probably wasnt

:rotfl:

Insinuations can be drawn from your earlier comment.

Andy.

MortgageMamma

Thats the problem with forums though isnt it, sometimes you cant get the tone of what the poster is saying and things can be misinterpreted