First time buyer unsure of diff. mortgage benefits

marliepanda

gll5dm wrote: »

I don't think I'll go down the HTB route as, from what I have understood, a much bigger amount will need to be paid back if the house price increases significantly.

I think HTB is great for people who genuinely cannot put a bigger deposit down and have ambitions of living in the house themselves.

Maybe this is poorly worded, but yes, HTB is obviously for people to buy a home to live in, not to buy investment properties. Its not an 'ambition' thats entirely the point...

fewcloudy

gll5dm wrote: »

Explain?

Do you think thousands of people do not do exactly the same? By that I mean take a residential mortgage out with the intention of renting out the home. Are you that naive? Or are you just on your high horse?

But yes, clearly a troll, cheers.

Maybe they do, maybe they don't. I personally don't know anyone who does this, and I've no idea how many do and I'm not sure you could say thousands with any certainty.

Possibly similar to people who talk on their mobile phones whilst driving, "we all do it" apparently... But actually, "thousands" do get caught and fined, but are then very unlikely to boast about that to their friends and family.

I've actually no idea of what the consequences are for you, if you do as you say you will, and then got caught.

Anyone?

fc

gll5dm

fewcloudy wrote: »

Maybe they do, maybe they don't. I personally don't know anyone who does this, and I've no idea how many do and I'm not sure you could say thousands with any certainty.

Possibly similar to people who talk on their mobile phones whilst driving, "we all do it" apparently... But actually, "thousands" do get caught and fined, but are then very unlikely to boast about that to their friends and family.

I've actually no idea of what the consequences are for you, if you do as you say you will, and then got caught.

Anyone?

fc

Nobody is boasting here, to just to clear that up.

Yes, quite clearly many thousands of people do take a residential loan out and rent their property after getting the mortgage.

The consequences are the lender can change the conditions of the mortgage, however if your circumstances change after getting the mortgage, i.e. you move in with a partner or get a new job that requires you to move away, you **should** contact the lender to find out if anything needs to change.

But do you really, really think people who get a residential mortgage in good faith, then need to move away, would go out of their way to let their lender know, in the knowledge that it'll likely cost them significantly more if the lender realises they'll be renting out the property?

I have no doubt you're a wonderful person who always does everything in good faith and by the rules. But other people, wonderful or not, may decide to take advantage of these "changing circumstances" and use it to their benefit.

That doesn't make somebody a troll, or a fraudster, or a criminal.

gll5dm

marliepanda wrote: »

Maybe this is poorly worded, but yes, HTB is obviously for people to buy a home to live in, not to buy investment properties. Its not an 'ambition' thats entirely the point...

Yes, understood. I will not be taking out a HTB mortgage.

marliepanda

You know you're leaving, so you're 'good faith' argument is out the window...

VFR-Rider

Had property, moved, converted to BTL.

In theory I could've gone with CTL but knew this to be longer term just went with the official route. Does it cost me more? Yes, but if I can't afford to do something I shouldn't be doing it.

It looks here that you're looking for support/ validation of your shady plan, the fact there may be lots doing it doesn't make it any less shady.

It's your dice, you roll it.

bigisi

gll5dm wrote: »

That doesn't make somebody a troll, or a fraudster, or a criminal.

Not a troll but certainly the latter two whether you like it or not. While I doubt anybody on here is perfect I can't see you getting anyone to encourage you to commit mortgage fraud (which oddly enough is a crime).

fewcloudy

gll5dm wrote: »

Nobody is boasting here, to just to clear that up.

Yes, quite clearly many thousands of people do take a residential loan out and rent their property after getting the mortgage.

The consequences are the lender can change the conditions of the mortgage, however if your circumstances change after getting the mortgage, i.e. you move in with a partner or get a new job that requires you to move away, you **should** contact the lender to find out if anything needs to change.

But do you really, really think people who get a residential mortgage in good faith, then need to move away, would go out of their way to let their lender know, in the knowledge that it'll likely cost them significantly more if the lender realises they'll be renting out the property?

I have no doubt you're a wonderful person who always does everything in good faith and by the rules. But other people, wonderful or not, may decide to take advantage of these "changing circumstances" and use it to their benefit.

That doesn't make somebody a troll, or a fraudster, or a criminal.

No I didn't mean you were boasting about anything. I meant that when people get caught and convicted of something they are very unlikely to talk about that to others. So for all we know a large number of people may get caught doing what you are planning to do. Or not. We don't know.

But your posts make it look like you are planning to get a residential mortgage, knowing that you will rent it out. In fact in your very first post you say...

"(hence why buying it now with a regular mortgage but fully intending to end up renting it)."

That's nothing to do with getting a mortgage in good faith, that's just mortgage fraud. And it's mortgage fraud regardless of how many thousands of other people do it, isn't it?

"That doesn't make somebody a troll, or a fraudster, or a criminal"...


It may well make you 2 out of those 3 things...

fc

gll5dm

marliepanda wrote: »

You know you're leaving, so you're 'good faith' argument is out the window...

Yes, you're absolutely right. I have no intention of living in the UK for the rest of my life. I don't know when I will leave, but I would like it to be the end of the year, completely unsure on a date though.

So with that in mind, you're saying I have to get a buy to let mortgage, because I may be lucky enough to find a job abroad some time in the future?

You're funny.

gll5dm

fewcloudy wrote: »

No I didn't mean you were boasting about anything. I meant that when people get caught and convicted of something they are very unlikely to talk about that to others. So for all we know a large number of people may get caught doing what you are planning to do. Or not. We don't know.

But your posts make it look like you are planning to get a residential mortgage, knowing that you will rent it out. In fact in your very first post you say...

"(hence why buying it now with a regular mortgage but fully intending to end up renting it)."

That's nothing to do with getting a mortgage in good faith, that's just mortgage fraud. And it's mortgage fraud regardless of how many thousands of other people do it, isn't it?

"That doesn't make somebody a troll, or a fraudster, or a criminal"...


It may well make you 2 out of those 3 things...

fc

You call it mortgage fraud, I call it taking a residential mortgage out to use for myself before renting the house out when I hopefully find a job abroad in the future and rent the house out. Might as well lock me up and throw away the key now.

The lender couldn't care less as they'll be getting their money every month. Indeed should I buy a house tomorrow, I'll be living in it myself for at least 10 months, potentially a lot longer.

This has gone massively offtrack due to people on their high horses, so let's leave it at that.