Help...I think Im in trouble

justjohn

Pixie5740 wrote: »

They could retrospectively apply a CTL interest rate or recall the entire loan. Although I would think that if the OP was going to be caught it would have happened by now.

unlikely as it could cause hardship and currently payments are up to date from what op has said.

Whitcher

No short payments, no late payments...

Pixie5740

Did you take a deposit from your tenants? If so was it protected with 30 days and issue the prescribed information?

Also see ending an AST

Whitcher

Deposit taken and held in a special account for tennets forget the name of it, but i know I don't hold it, so that the Tennant can dispute any deductions made if any. They have contracts etc. I done everything right in terms of the tenants, it's just the mortgage company I never asked permission, I have landlords insurance

trevormax

Have you paid tax on the rent you are getting? (assuming it is not an interest only mortgage). This is something you need to look in to asap I think.

HAMISH_MCTAVISH

Put it on the market and sell it.

Despite all the doom and gloom merchants on here and their scare stories, the reality is, banks almost never instigate repo procedures for failure to get CTL, and at worst will change you to a BTL rate.

They're happy to get the mortgage paid, and happier still to get the capital back following a successful sale.

nicholaswitchell

The bank won't be particularly bothered - after all, it is made up of employees, and what do employees want to do most? Either have a break, or go home.

They're not interested in witch hunts to get people in trouble.

Just issue two months notice to your clients, at the end of that two months give them their deposit back, and sell the house.

Thats it.

hostie

You can probably sell with the tenants in it. If the lettings agent has been good to them regarding maintenance, they will most likely be happy enough to arrange times when viewings can be done. However think about the situation of the house and the potential buyer. There are buyers who would be interested in buying it with tenants in it, but some people might be put off by this and the house itself is unlikely to look its best with all their stuff in it.

happylucky

OP: you mentioned the original mortgage 8 years ago was with northern rock. Who is it held by now...is it NRAM by any chance?

Because if so, and you are just only now out of negative equity then you should know that they can't put you on BTL but are also not terribly likely to give you consent to let unless your equity, rental income and job income figures stack up. You might also find it tricky to get a btl elsewhere with limited equity. I'm no specialist, but I'm sure a mortgage broker could advise.

In any case, if you are looking to sell then I can't imagine you'd be liable to any fines, normally letting without consent just gives the bank rights to call in the debt or increase charges for future holding period, no?

Good luck.

gallygirl

I can't actually see how NRAM would become aware the property was being let? Your solicitor will surely just ask for a redemption figure and that is it.