Parents living in my house

wayne3280

I wonder if anybody here could help me.


I took out a mortgage on a property I was living in and then later moved in with my partner. She pays the mortgage on the house we live in and I continue to pay the mortgage on my vacant property.


I advised my mortgage provider that the property was vacant and they said that was fine but that I had to stay on their variable rate, which I'm fine with.


My parents are selling their property and I would like them to live in my house rent free. Is there anything I should be considering? Would mortgage lenders have any issue with that setup?


I would appreciate some advice.


Thanks,


Wayne

CKhalvashi

There's no problem in principal, however you may need to look into a BTL mortgage, depending on the provider, if info on the forums I've read is correct.

Someone will offer more advice soon, and I'm sure I'll stand corrected

wayne3280

Hi and thanks for the response.


I had assumed a BTL mortgage might be required.


Thanks again.

wayne3280

Can anyone else confirm whether it's likely I'll need a BTL mortgage?

Pixie5740

If you are not charging your parents rent I wouldn't have thought you would require a BTL mortgage because you're not letting the property.

Thrugelmir

wayne3280 wrote: »

I continue to pay the mortgage on my vacant property.

Have you advised your issuers of this fact?

SpreadPyar

What I want to know is,

Isn't it same as an adult living in his/her parent/s house. If no one is paying rent then why should it be BTL mortgage.

As long as the relevant parties are informed... i.e. Election registration, council tax etc. it should be ok.

Leave this to some expert to come and respond. Another option is to go to CAB and see what they advise.

Finally if you have exhausted all options and still wondering it would be best to ask the lender for advise.

Good Luck

System

In your example it is an adult living WITH their parents in the house. What is being discussed is different it would be the adult living in the parents house but parents living elsewher. I.E Adult is a tenant hence the probable requirement for BTL even though no rent may change hands.

wayne3280

Hello all,


Thank you for the advice.


I ended up speaking with the lender (Barclays) and they advised that as it is a 'close family member' they have no issue with the arrangement at all.


Some time ago I was also informed that whilst the property was vacant and my fixed rate term had expired, I couldn't move on to another fixed rate deal whilst it wasn't my primary residence. Barclays stated this arrangement (i.e. my parents living there) would mean I can now also look to move on to a fixed rate mortgage once again.


Thank you again for the responses.

lawriejones1

The advice should surely be: "Speak to your lender and be honest". Hanging worked in a bank it's the best way to operate...

chappers

Another thing to bear in mind is your current insurance on the property, most insurers won't cover you for a vacant property. There are some insurers such as Ocaso who specialise in vacant properties.
I think that's what Thruglemir meant.