Buy to let: the future

motorguy

saverbuyer wrote: »

Tenants have access to the register. Everyone does.



Have fallout with the landlord.



Check the register. They aren’t on it…

I can see why they are doing it, for those of us who are "legit" anyway, then its just a little extra paperwork and a £70 payment. For those who arent, well they have a "window of opportunity" to sort it out.

ladeeda

saverbuyer wrote: »

3 years.


I pity anyone who has been letting their property without lender consent.


The register will be open to all.

If they register.

You can search by address so the lenders will be all over it and so will the Housing Benefit office.

motorguy wrote: »

You *have* to register by 24th Feb 2015 if you already have a tenant prior to 24th Feb 2014.

Of course if you didnt, you would then be liable for a fixed penalty fine of £500 if they twigged you were renting, which is less than the charges associated with changing to a BTL mortgage or the increase in rate your lender would apply....

Not personally impacted as our mortgage company knows we rent - we stated that to them from day one.

Loads will get away with this once, after that it will be court and a fine of up to £2500

warmhands.coldheart

saverbuyer wrote: »

.....I pity anyone who has been letting their property without lender consent............

ladeeda wrote: »

....You can search by address so the lenders will be all over it............

What Lenders say and what they do are two entirely different things.

If the money is still coming in and there are no issues with the repayments then I highly doubt the lender is going to spend time and money trolling some register to see if a person is renting out their house with a "wrong typre" of mortgage......

If someone comes looking to reduce to Interest only or defaults on a payment, fair enough they will probably use the info. However, if all is going smoothly, they aren't going to rock the boat....... Why would they? It's all about the money !!!

motorguy

warmhands.coldheart wrote: »

What Lenders say and what they do are two entirely different things.

If the money is still coming in and there are no issues with the repayments then I highly doubt the lender is going to spend time and money trolling some register to see if a person is renting out their house with a "wrong typre" of mortgage......

If someone comes looking to reduce to Interest only or defaults on a payment, fair enough they will probably use the info. However, if all is going smoothly, they aren't going to rock the boat....... Why would they? It's all about the money !!!

There was a report back in Nov on this - apparently the mortgage companies are all over this like a rash.

A lot of them will charge you say, 1.5% more in interest if you're renting out, OR push you to a BTL mortgage. All extra ££££'s to them.

Easy pickings for the banks

warmhands.coldheart

motorguy wrote: »

There was a report back in Nov on this - apparently the mortgage companies are all over this like a rash.

A lot of them will charge you say, 1.5% more in interest if you're renting out, OR push you to a BTL mortgage. All extra ££££'s to them.

Easy pickings for the banks

I agree but likewise it could backfire on them if someone is not in a position to be able to afford the higher repayments and so go bankrupt. The bank will loose out then...
Take for example a recently married couple. Each had a house when single (in their own separate names)....... Mr A rents out his house (now in £30,000 negative equity) and moves in with Mrs A in "her" house..... Bank realises Mr A is renting so ask him to change mortgage or pay more... Mr A can't afford this due to other debts so bites the bullet and goes bankrupt...... Bank potentially looses £30,000...... Had bank left him be or maybe just charged a basic admin fee to "Note" the change, everyone would be in a better position.........

At the end of the day I suppose it'll be up to every individual bank and how they decide to approach it

Mistral001

Does anybody know why this register has been established? There must be one over-riding reason bringing it in.


There are certain advantages for some people here are some |I can think of:


- So that mortgage companies know which of their properties are being rented
- A way of marketing companies getting the names and addresses of landlords
- So that nosey people can find out where their friend gets all their money from
- So HMRC knows who is getting an undeclared second income.


I do not have a buy-to-let and think it is probably a good idea, but like all these ideas, has it been properly thought-through?

motorguy

warmhands.coldheart wrote: »

I agree but likewise it could backfire on them if someone is not in a position to be able to afford the higher repayments and so go bankrupt. The bank will loose out then...
Take for example a recently married couple. Each had a house when single (in their own separate names)....... Mr A rents out his house (now in £30,000 negative equity) and moves in with Mrs A in "her" house..... Bank realises Mr A is renting so ask him to change mortgage or pay more... Mr A can't afford this due to other debts so bites the bullet and goes bankrupt...... Bank potentially looses £30,000...... Had bank left him be or maybe just charged a basic admin fee to "Note" the change, everyone would be in a better position.........

At the end of the day I suppose it'll be up to every individual bank and how they decide to approach it

Oh aye. Totally agree. There may well be a case for "let sleeping dogs lie".

warmhands.coldheart

motorguy wrote: »

Oh aye. Totally agree. There may well be a case for "let sleeping dogs lie".

...... a common sense approach........... but then unfortunately common sense does not prevail very much these days !! :rotfl:

Cotta

warmhands.coldheart wrote: »

...... a common sense approach........... but then unfortunately common sense does not prevail very much these days !! :rotfl:

The arguement doesn't completely stand, Mr. A is no longer paying and mortgage and the likely renatal income he is getting would cover his mortgage.

wannabe_credit_free

I currently have 2 btl. One was vacated before xmas 13 and the other has a tenant with 2mths rent arrears. Meanwhile I still have to find the agents, factors and mortgage fees, not to mention the council tax for the empty flat, as it is furnished. You won'nt get rich on buy to lets, unless you have at least 10 of them and tenants who pay on time...:(

I shall sell up, when the market has improved.