Advice on buy to let

Blockz99

Hi
I currently have a buy to let mortgage on my home - have done for 13 years . I bought using a buy to let mortgage as my salary was not high enough to afford a house . I have always lived in the property and always had lodgers to help pay the mortgage although I know I should not have been living in the house . The mortgage company must know I am living here as they always send my statements for the past 13 years.

I'm thinking of selling and luckily will make about 350 k . I want to buy a property that is already split into two flats a basement 1 bed and a 2 bed masonette upstairs. I'd live in the basement and rent out upstairs . Due to illness I have been unable to work for the past two years and feel it will be a year or two before I can go back to work. To make this happen I need to borrow about 125k to put towards my 350k . I've looked at buy to let mortgages and they all now seem to say as well as a large deposit which I would have you now need to have an annual salary of 25k . I've always thought that with buy to let a salary was not needed due to the nature of buy to let - has this all changed .

Is my plan possible ? if anyone could point me in the right direction that would be appreciated.

Sadly for me my current buy to let mortgage is not portable.

M

bigfreddiel

Well as your original mortgage was close to fraudulent I would be very careful as to your plans to move on.

I may be completely wrong tho.

Cheers fj

Pixie5740

The changes in BTL mortgages (large deposit + income if you don't already own your home) were brought in because of people like you.

You'd really need to talk to a mortgage broker but I'd give you snowball's-chance-in-hell odds.

Blockz99

Yes I know I was not supposed to live in the house. At the time I didn't see this as fraud and it did not seem to be a problem at the time as mortgage companies were falling over themselves at the time to lend to anyone . I suppose I was naieve and desperate at the time. Times have changed and I know that I would not be able to do this today with the new rules in place . I won't be doing this again - hence my question on here -- is there any legit way I can do this considering I would be putting down a 60% deposit .

Thanks for your reply .

Blockz99

People like me ? I've never defaulted on the mortgage and it was 13 years ago a different time.
Beginning to regret posting as I'm being labelled a fraudster . :-( .

marksoton

Blockz99 wrote: »

Beginning to regret posting as I'm being labelled a fraudster . :-( .

Unless your current mortgage specifically allows you to reside it isn't labelling it's fact.

Pixie5740

Yes people like you who obtain a BTL mortgage when you never intend to let the property out but instead reside in it yourself. In other words people who commit fraud to obtain a mortgage. Similar to those who apply for a residential mortgage with the sole intention of letting it out.

Blockz99

Having dug out and read my original terms and conditions . Nowhere does it specifically prohibit residency by the owner . It lists who I can and cannot let to dss , students etc but does not mention that I as the owner cannot reside in the house. I suspect that would not be the case these days.

MortgageMamma

You need to take some proper advice. What is done is done now, and you've maintained your payments and want to move on. I can't see you being able to get a regular mortgage as you are not working due to illness therefore not considered to have an income other than the rent income. What do you live on? I am not judging I have recently returned to work after a long term illness myself. If you have other, non benefit income then there may be a way forward but you'll need to take advice from a very experienced broker - sorry I can't be specific about what could or not be done!

Blockz99

Thank you MortgageMomma for the helpful and non judgemental advice. Two years a ago I suffered a life threatening illness and in the same month got made redundant after 26 years . Been living on my savings over the past two years as I'm not entitled to any benefits being a home owner . Savings are are low now so I need to sell so was hoping that my idea would work . I will now do as you say and get advice from a professional.

After working for so long and never claiming anything from the state and never even stolen so much as a lollypop in my life other posters comment upset me . Thank you for your kind post. Its nice to know there are good people on here.

Kind Regards

Thrugelmir

With no income. There's zero possibility of obtaining a mortgage of any kind. Suggest you cash in while you are able and come up with a plan b. That not only provides you with a home but some income as well. If the wind changes direction your current gain could rapidly diminish.