Changing Interest only mortgage

Mazza48

Hi Folks, I am hoping that somebody can give me some advice please. I have a Santander mortgage that I switched to interest only 5 years ago due to my financial situation at the time. However, for the last year I have rented the property out (without informing Santander) and wish to continue to do so. My financial situation is much improved and I would like some advice please regarding whether I should just make overpayments on my mortgage or ask Santander for another repayment deal.

Any advice much appreciated.

AnotherJoe

Mazza48 wrote: »

Hi Folks, I am hoping that somebody can give me some advice please. I have a Santander mortgage that I switched to interest only 5 years ago due to my financial situation at the time. However, for the last year I have rented the property out (without informing Santander) and wish to continue to do so. My financial situation is much improved and I would like some advice please regarding whether I should just make overpayments on my mortgage or ask Santander for another repayment deal.

Any advice much appreciated.

You should ask to move it to a BTL IO mortgage.

But it sounds as if you intend to continue breaking the terms of your mortgage, and invalidating any insurance you may have, if you have any.

Are you bothering with any of the other legal niceties about being a landlord? Registered deposits, gas checks, tax returns etc?

Westminster

You could make capital repayments over and above your interest payments to effectively put you on a repayment mortgage. If you were to stay on IO then it gives you some flexibility should your situation worsen in the future.

glosoli

AnotherJoe wrote: »

You should ask to move it to a BTL IO mortgage.

But it sounds as if you intend to continue breaking the terms of your mortgage, and invalidating any insurance you may have, if you have any.

Are you bothering with any of the other legal niceties about being a landlord? Registered deposits, gas checks, tax returns etc?

This...

Utterly stupid not to have any valid insurance in place, wouldn't want to be your neighbour or tenant.

csgohan4

Op you should come clean to your lender, anything else is mortgage fraud and the lender could ask for the whole balance immediately.


If you couldn't afford a house 5 years ago and now things have improved, why not live in it?


Are you aware of the tax and legal implications of being a LL?


http://forums.moneysavingexpert.com/showpost.php?p=67759929&postcount=7

theshed

About twenty five years ago I rented out my house without informing the lender.
in all honesty back then I did not know I needed to. When they found out, I received a letter telling me it was against their terms and to end the tenancy.
I simply explained I did not realise and if I was to end the tenancy I would not be able to pay them.
They just changed the terms and increased the percentage rate slightly.
The upside, being as I was insured with the lender and the letting agent, dual insurance is not allowed so I received 50% refund of each of the policies over the three year rental.
Ignorance sometimes is bliss.
Landlord insurance is not expensive.

vw100

For peace of mind it worth getting the mortgage on to a BTL - I do know that if the local authority runs a licencing scheme, they may contact the lender and let them now the property is on a licence scheme, ie rented and to check that it is within the terms.

Mazza48

Thankyou for your replies. Yes I do indeed have insurance and arrange yearly gas checks. I am also aware of the tax and legal implications of being a LL. The local authority have not introduced a licencing scheme yet but no doubt will and I will obviously comply.

Richey_

Mazza48 wrote: »

Thankyou for your replies. Yes I do indeed have insurance and arrange yearly gas checks. I am also aware of the tax and legal implications of being a LL. The local authority have not introduced a licencing scheme yet but no doubt will and I will obviously comply.

Irresponsible and pathetic.

You have a house that you cannot afford, which you are illegally letting out. You have insurance that could be invalid and some poor tennant who you are putting at risk. You say you are aware of the tax and legal implications but you choose to ignore this and essentially you will only stop when a local authority licensing scheme comes in to force you to play by the rules like everybody else.

I hope that you are caught out, the bank immediately demand all of their money back and that the government pursues you fully for the tax evasion. I hope that you have a tennant who realises you have not protected their deposit, they stop paying their rent and become an absolute nightmare to evict. I also hope that nothing bad happens to your tennant as the poor tennant is trusting you to be responsible, which you are not.

What were you hoping to achieve in this forum? People willing you help you put others lives at risk and advice how to break the law? Or just to antagonise and show off your small man syndrome? Pathetic individual, man up and stop putting others at risk by your actions.

AnotherJoe

Errm, Richey, how is the OP putting peoples lives at risk ???????
Nor indeed breaking the law AFAICS.
Certainly breaking the terms of their mortgage. But nothing illegal they could be prosecuted for.

Mazza48

Oh dear! Someone got out of the wrong side of the bed!

I am not even going to justify myself to you.

Merry Christmas!