Living at the house you are buying

ST1991

A very quick question!

Does a mortgage lender look any differently at lending if you are already living at and renting the property you wish to buy?
I can't see any reason why... and surely people do it all the time... but our mortgage broker is telling me they 'are not keen' on it.

There is nothing we can do as we are living there, but just wondering if anyone knows if that is true, and if so, why?

This is a repeat application and exchange hasn't happened yet and our previous offer expired. Our previous application was at our old address, and other than the move nothing else has changed.

bryanb

Right to buy tenants do it frequently.

ST1991

This isn't under the right to buy scheme though...

We moved in under tenancy whilst the sale is going through.
Our previous rental flat was being sold so we had to move out, and the seller of this house needed someone in as due to lots of inquiries between solicitors she couldn't afford to keep it empty (previously rented out).

G_M

I don't see why it's a problem.

Of course, mortgage lenders always insist that the seller must guarantee to hand over the property "with vacant possession" (ie no grandma still in bed upstairs!), and the seller cannot promise to do this if you are already living there. Hence the lender might have a bureaucratic problem. But a pointless one.

ST1991

G_M wrote: »

I don't see why it's a problem.

Of course, mortgage lenders always insist that the seller must guarantee to hand over the property "with vacant possession" (ie no grandma still in bed upstairs!), and the seller cannot promise to do this if you are already living there. Hence the lender might have a bureaucratic problem. But a pointless one.

Our tenancy agreement has a clause to immediately terminate upon agreement of both us and the seller. Perhaps we could leave the house, complete, and then go back in :rotfl:

davidmcn

It's not a problem, and pretty commonplace for tenants to buy from landlords while staying in situ.

ST1991

Thanks everyone... thought that was the case, but got a bit panicked when our broker said it!

Put my mind at ease

ViolaLass

Sounds like you might need a better broker.

Sambella

My sister rented the house she was buying until the sale went through. There were no issues.

She had sold her house and the house she was buying was empty. Tenancy agreement was set to end at point of sale completion.

agrinnall

ST1991 wrote: »

...but our mortgage broker is telling me they 'are not keen' on it.

Is it the 'already living there' bit that the broker is saying they are not keen on or perhaps some other aspect of the property that is making it difficult to mortgage?

tim9966

I had no major problems when I bought the house I was renting.


It did get a few people confused when asking for my current address and the address of the house I was buying, they would come back and say you have made a mistake and put the same address in both boxes on the form.




Also for picking up the keys when I'd already had them for 6 months.