Need help with BTL mortgage

Thbm

Currently in the process of switching my mortgage to a BTL however I have a tenant in place. Have not informed lender as would be classed as unauthorised letting? Or would it? They now want to see my bank statement which shows my rent going in.
Want to be right by everyone but always a stumble. Also in process of purchasing 2nd house to live in. Didn't tell them 🙈 they also said under there terms the tenant must be working. She's not! And I cannot kick her out. She's a carer for her son.
Any advice please. New to this.thanks.

ACP021

You might want to post this thread on the Mortgage boards as there are experienced people there that can help

AdrianC

You have a tenant already, but no consent to let? Yes, your existing lender will regard that as a breach of your agreement.

You're buying an additional property, but are lying to your solicitor about your existing property? Presumably, to "save" on SDLT...? Or lying to the lender...?

Thbm

Solicitor is aware of my other property. They're not concerned. Sorry what is SDLT?

LdnFtB

Oh blimey. Stamp Duty Land Tax - you'll be paying an additional 3% on top of the usual stamp duty as you're buying a second home.

Are you aware of Section 24?

TonyMMM

Thbm wrote: »

Sorry what is SDLT?

Stamp Duty Land Tax ... which you will be paying at the higher rate on your second property.

Thbm

Oh yes I'm paying this on 2nd property.

00ec25

so is your question:
- I have successfully committed mortgage fraud so far, will I be caught if I carry on and lie again to my existing lender?
or
- can I use a broker to see if there is a new lender who will accept my circumstances?

G_M

Thbm wrote: »

Currently in the process of switching my mortgage to a BTL however I have a tenant in place.
Oops!
Have not informed lender as would be classed as unauthorised letting?
Why the question mark? Yes, it's unauthorised letting.
Or would it?
Errrrr.... Yes.
They now want to see my bank statement which shows my rent going in.
oops again. They are going to spot that.

Want to be right by everyone but always a stumble.
Pity you didn't want to be right by everyone from the start. However......
Also in process of purchasing 2nd house to live in. Didn't tell them
Oops.

🙈 they also said under there terms the tenant must be working.
They can only require the tenant to be working at the time the tenancy is created. You cannot control what your tenant does once in occupation.
However in this case (I assume) your tenant was not working from the start

She's not! And I cannot kick her out. She's a carer for her son.

Well, depending on the tenancy terms you could consider evicting, though I agree that's pretty tough on the tenant (who is an innocent party). But anyway, your rent statements would still show the rent, depending how many the lender requests and how long you wait after evicting before sending in statements.


You have 3 optons:

1) Come clean
Contact the lender, explain the full situation, and hope they allow you to switch to BTL with the existing tenant.
You might want to share the lender's name and see if people here, or on the mortgage board, know how flexible/sympathetic that specific lender is

2) Keep quiet
Stay on current residential mortgage and hope no one finds out

3) Apply and keep fingers crossed
Proceed with your application without mentioning the tenant, hope they don't spot the rent payments on your statement, and fingers crossed

movilogo

Lenders don't visit houses to see if already tenanted. Just ask the lender to change to BTL mortgage (your rates may go higher but may allow same rate for 12 months) - this is not a big deal.

But you have messed up receiving rent in same bank account. This VERY LIKELY to be flagged up if you show this statement to your lender for 2nd property.

G_M

movilogo wrote: »

But you have messed up receiving rent in same bank account. This VERY LIKELY to be flagged up if you show this statement to your lender for 2nd property.

Is it the lender for 2nd property who has requested the statement, or is it part of the BTL application for the tenanted property?

(or both?!)