Renting a house on a residential mortgage HELP!!

tim123456789

Guest101 wrote: »

In what way is it not suitable?

I agree

methinks you are being fussy

there's a couple with a baby on the ground floor from me, in a 1 bed flat

and all for a saving of 50 pounds a month on the rent

If they can manage that, I'm sure you can manage.

Mojisola

bodybuilding123 wrote: »

Spoke to a ton of mortgage brokers and advisors and all said it was basically impossible for me to get a buy to let mortgage considering my age and my income from my business + it would be my first ever house as I still live at home.

One mortgage broker said I could easily get a residential mortgage and rent it out with no difficulties as he knows tons of people who do the same with no hassle

And yet you went with the one?

You were either very naive or you knew that the advice was dodgy but still chose to take it.

Mojisola

bodybuilding123 wrote: »

the house is generating a nice little bit of extra cash every month, tenants are happy, letting company knew It was a residential mortgage and turned a blind eye and said it would be fine.

So you managed to find a dodgy letting company as well!

Is the tenants' deposit in one of the schemes or have you opted out of that bit of the law as well?

theartfullodger

bodybuilding123 wrote: »

....

Of course I knew the advice was dodgy I just wanted to make money.......

Not stupidity or ignorance, but sins of commission.

Not sure our country want that sort of citizens. What do others think?

Lovin_It

If mortgage company find out you've not been living there, they can change you to a BTL mortgage (with much higher interest rate) and back date it to when the tenant moved in, and send you the bill for the difference.

Might not be popular advice on here, but keep quiet with mortgage company (this is money saving site sorry!), when the tenancy is up give notice, then sell the property or change the mortgage. You can ask for consent to let at this point and they might allow it on your resi mortgage with no increase in interest.

You should be paying income tax to HMRC and CGT when you sell if it increases beyond your CGT allowance (might not by the sounds of it). But this is nothing to do with the mortgage company. I don't see lying to the bank as serious as dodging tax. IMO.

Mojisola

bodybuilding123 wrote: »

Of course I knew the advice was dodgy I just wanted to make money and it would of been fine had I not fallen in love and wanted to move out so quickly.

No, it wouldn't. You would still have been committing fraud.

Are you declaring the rent from your tenants on your tax return?

bodybuilding123

Lovin_It wrote: »

If mortgage company find out you've not been living there, they can change you to a BTL mortgage (with much higher interest rate) and back date it to when the tenant moved in, and send you the bill for the difference.

Might not be popular advice on here, but keep quiet with mortgage company (this is money saving site sorry!), when the tenancy is up give notice, then sell the property or change the mortgage. You can ask for consent to let at this point and they might allow it on your resi mortgage with no increase in interest.

You should be paying income tax to HMRC and CGT when you sell if it increases beyond your CGT allowance (might not by the sounds of it). But this is nothing to do with the mortgage company. I don't see lying to the bank as serious as dodging tax. IMO.

Thank you this is what I was thinking, Spoken to my letting agent and the tenancy ends in June I have to give notice in March, Will have to see if the BTL mortgage is worth while or sell property at this point. Yes my accountant is already aware of my rental and will definitely be paying tax on it will be giving all my rent statements in for next years tax return as a sole trader.

Mojisola wrote: »

No, it wouldn't. You would still have been committing fraud.

Are you declaring the rent from your tenants on your tax return?

Yes I will be.

da_rule

In the interim period you could try and put it on the market with a sitting tenant. You might get some interest.

kai666

Just something to think about....

What do you think the chances of your residential insurance policy paying out when your tenants accidentally destroy or burn down your house?

Somewhere between zero and no chance I would imagine

chib

Hopefully you'll do the right thing, but I just wanted to call out that the dodgy broker is irrelevant in all of this - you signed the papers confirming you'd abide by the terms knowing there was no intention of doing this.

I recognise it isn't right, but the post by "Lovin It" is what I'd do.... and hope that the tenants are trouble free and no insurance claim is needed.