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should we let know lender abour short term let?
Tykva
Posts: 112
Forumite
Hello,
we are buying a house (250K, mortgage is 92K) but haven't sold a flat we live in yet. The flat is owned 50/50 with my brother in law (with no mortgage on it) and we can live there until it is sold. So we were thinking of possibility of letting house for a year maximum.
How do lenders check whether we haven't let a house out?
Can we avoid informing a lender? and if yes, what should be done?
Advice is much appreciated. Thank you!
we are buying a house (250K, mortgage is 92K) but haven't sold a flat we live in yet. The flat is owned 50/50 with my brother in law (with no mortgage on it) and we can live there until it is sold. So we were thinking of possibility of letting house for a year maximum.
How do lenders check whether we haven't let a house out?
Can we avoid informing a lender? and if yes, what should be done?
Advice is much appreciated. Thank you!
0
Comments
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Could you re-write your post in meaningful language as it is curently unclear.
What do you own now? What mortgage do you have? Where do you live? Where does any other co-owner live? What do you plan to do with the property??
What are you buying? With or without a mortgage? To live in or to let? In whose name?0 -
Lost me as well. If you own a house already and it has nothing to do with the lender and you're not getting any rent then you don't need to mention it.
If you are going to buy a house but not move in and let it out you will be in breach of the T's and C's of the mortgage. Many things could happen. They could call the loan in immediately and you will lose your deposit due to the huge fees and charges they will charge you.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
<picks up post, shakes it>
Right, I THINK he's saying that he currently lives in a flat jointly-owned with his BiL, and pays no rent to him.
He now wants to buy a house, with a mortgage, and rent it out without telling the lender.
No, the lender will not be at all happy with you doing that.0 -
Could you re-write your post in meaningful language as it is curently unclear.
What do you own now? What mortgage do you have? Where do you live? Where does any other co-owner live? What do you plan to do with the property??
What are you buying? With or without a mortgage? To live in or to let? In whose name?
done.
Adrian C is correct.0 -
<picks up post, shakes it>
Right, I THINK he's saying that he currently lives in a flat jointly-owned with his BiL, and pays no rent to him.
He now wants to buy a house, with a mortgage, and rent it out without telling the lender.
No, the lender will not be at all happy with you doing that.
Yes, we understand that, but ppl do it..
In that case should we now ask lender change for BTL and when we are actually happy to move there to normal mortgage?
Thank you.0 -
please answer the questions previously asked!
However
Do not do what I think you are considering doing.Hello,
we are buying a house (250K, mortgage is 92K)
Residential or BTL mortgage?
but haven't sold a flat we live in yet. The flat is owned 50/50 with my brother in law
any mortgage?
and we can live there until it is sold. So we were thinking of possibility of letting house for a year maximum.
If you let the house for the 1st year you will need a BT mortgage
How do lenders check whether we haven't let a house out?
There aare many ways a mortage lender can find out if you have let a property where they have granted a residential mortgage. Don't try this.
Can we avoid informing a lender?
Yes. Simply don't inform them.
and if yes, what should be done?
Nothing. Just wait for them to find out you lied on your mortgage application, and call in your mortgage (demand you repay it).
Advice is much appreciated. Thank you!
Either:
1) do not buy a house till you have sold the flat - then live in the house or
2) buy the house with a BTL mortgage and become a landlord (see bleow) or
3) buy the house with a residential mortgage and live in it. Let out the flat (and if you have a mortgage on the flat, obtain CTL)
New Landlords (information for new or prospective landlords)0 -
Why can't you just move in to the house you are planning on buying? Is there a reason why you need to stay in the flat until it's sold?0
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fairy_lights wrote: »Why can't you just move in to the house you are planning on buying? Is there a reason why you need to stay in the flat until it's sold?
Recovering money spent on the whole process of selling/buying0 -
Simple. Because the flat's cheaper to live in, and the rent'll pay the mortgage and fees with some left over. Then, in 12mo time, when the tenant shows no signs of moving, the OP will sort of forget their "But honestly, just 12mo maximum!", and continue to defraud the lender by failing to compensate them for their extra risk.fairy_lights wrote: »Why can't you just move in to the house you are planning on buying? Is there a reason why you need to stay in the flat until it's sold?0
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