a way round buy to let?

YoungBusinessman

High risk to save a few bob extra % on the intrest rate and insuurance.....

not worth it at all.

Dave_the_Ginger_Cat

If someone came onto this board and asked 'how do I evade paying tax?' we would argue vehemently that this is illegal, probably report the user and decline to give advice.

If they asked how do I reduce my tax, we might give advice, we might refer them to a tax accountant

In my view this question falls into the first category. May I suggest, OP, that you set up a new forum on evasion of dues and avoidance of the law, and keep this forum for genuine money savers

ACG

When i worked for a lender they seen their !!! when people took out a mortgage and requested CTL within the first 12 months.

They would usually agree it after 6 months (subject to it being below a certain LTV) but they would increase the rate payable and charge an admin fee.

Why are you against a BTL mortgage? Aside from the application fees most lenders who offer consent to let increase the rates upon offering it anyway so its not really worth the hassle for the sake of £1k extra you would pay on the application fee.

Also on BTL you can put it on Interest only meaning there is more of an income each month, you can use that to then overpay on the mortgage or take a bigger wage.

Do it properly and the right way and you will have nothing to worry about. Tell lies and get found out and you could find yourself in court with a fine or prison sentence (and prison sentences have been handed out before now), its upto you to decide if its worth the risk.

holly_hobby

want2bmortgage3 wrote: »

is it possible to just get residential mortgages on 2 year deals, and immediately obtain consent to let for 2 years?

after the 2 year deal, re-mortgage on another 2 year deal and do the same again?

this means you wouldn't need a buy to let mortgage, and anybody could do it without having to have their own residential mortgage first?

God what is it with peeps trying to look for back door BTLs, this is the 2nd or 3rd post in as many days !!

Anyhoo I digress....

If the property is being let at the time of remortgage /or request for new deal with current lender, then this would have to be on a BTL arrangement - as the property is already being let - so once any product you're on finishes you either bite the bullet and switch to BTL (either with the current or alternative lender) OR stay with your current provider on SVR/BMR, with any loading that may be applied.

CTL is a temporary arrangement essentially designed to assist accidental landlords (not build a portfolio off the back of them - and having 2 props being being let within a short period of purchase, will certainly trigger alarm bells). So even if CTL is initially provided, at some future point (usually 3 yr mark) you will be forced onto a BTL arrangement.

In essence what you are currently trying to achieve, is commerical finance at residential rates - which (without judging) is rather underhand, some may even come right out and say its fraudulent (ie a deliberate intention to decieve for financial gain).

And given that the associated mge interest are a permitted HMRC deduction from rental income, (along with BTL acquisition/mge admin costs from disposal gains), I really can't see the benefit of pching as a resi and exposing yourself in this way. Other of course than a lower payrate obviously providing a higher net yield - BUT this will only directly benefit you if your total annual income (inc rental) remains below your PA threshold - otherwise you're just increasing your tax exposure, and given the potential compliance and audit risk factors re the lender, I don't think its a particularly attractive trade off, if they smell a rat do a bit of digging and it all goes Pete Tong !!

Anyhoo, the choice is of course yours on how you proceed with this.

Hope this helps

Holly