Buy To Let Mortgage - do I need to let it at all?

dastrange

Hi

I've been trying to purchase a property on a second home mortgage. I wanted to the property to use primarily as a holiday home, and perhaps offer it out to friends and family really cheap if I'm not staying there.

My situation means it's proving really difficult to get a second home mortgage (I own my own company and my wife is a freelance).

However, I've been offered a Buy To Let mortgage instead, which is fine, except it wasn't my plan to let the property long or short term.

Does it mean I have to let it to a tenant, whether I want to or not? Will the mortgage company want proof? Therefore, do I need turn this into a full-time business?

I have no idea about letting to tenants. Although it doesn't scare me. I just don't want to be clobbered for tax or something if I haven't taken it seriously enough!!

Can i just decide to NOT have a tenant at all, and just use it myself here and there?

Cheers

Darren

Annisele

If you get a BTL mortgage, you won't have to let the property out - but you will have to comply with the terms and conditions of the mortgage.

Usually the terms of BTL mortgages prevent the borrower from living in the property himself (to prevent people from using BTLs to get around affordability checks).

They will usually also prevent the borrower from letting the property to his immediate family. That's because BTL lending is usually unregulated, but it becomes regulated if a family member is involved.

If you do decide to get tenants, have a look at G_M's post for new landlords, which explains some of the things you need to know.

brit1234

This is the newish fraud called "Gaming". Its the way corrupt mortgage advisors are getting mortgages for residential properties who can't meet the criteria. Lenders area apparently starting to clamp down.

Do it the honest way, not worth being caught out.

dastrange

Thanks guys, much appreciated.

Perhaps I could get tenants in for a year or two, and try to swap the mortgage after the fixed term.

Thanks for the link too, will take a look.