3 Residential Mortgages

Yas1981

Hi


If we have 3 residential mortgages can the bank take one of the properties off us because of it?



Any input will be appreciated.

ACG

If you are letting it out without permission - they may give you a month or so before calling in the loan.
If you do not keep up repayments they would repossess.

Those are the only 2 I can think of off the top of my head.

AnotherJoe

Yas1981 wrote: »

Hi

If we have 3 residential mortgages can the bank take one of the properties off us because of it?
.

No of course not.


If those are not really residential mortgages but BTLs, or you are otherwise breaching their Ts&Cs, they could call in the mortgage on 1, 2 or all 3 mortgages. Whichever is/are breaking the Ts&Cs.



That isn't taking the house off you though, it doesn't become their property, you get to sell it.

Yas1981

All 3 are residential and the people living there are the actual owners my friend only helped them get the mortgage. He doesnt make any money from this. Now the problem is he cant get a mortgage by himself because of this and the owners of the property still cant get a mortgage. Is there a way he can release his name off the properties by declaring whats happened?

BoGoF

Yes......by selling them.

Dont you realise a residential mortgage is meant to be the residence of the person taking out the mortgage.

Sounds like mortgage fraud that has came back to bite you.

ACG

All 3 are residential and the owners of those properties live in them - if that were the case then it would not affect you/your friend in any way, in the same way that me living in my house would not affect your friend.

It sounds like maybe your friend has either taken out a Mortgage/joint Mortgage for or with other people.

If it is WITH them (ie joint ownership) then there is no risk of repossession/calling in the loan. If it is for them (ie just your friend on the Mortgage) then it could happen.

But in any event, being on 3 mortgages will affect future applications.

There is clearly a lot more to this than you are letting on/aware of and the finer details will dictate what options are available.

foxy-stoat

Yas1981 wrote: »

All 3 are residential and the people living there are the actual owners my friend only helped them get the mortgage. He doesnt make any money from this. Now the problem is he cant get a mortgage by himself because of this and the owners of the property still cant get a mortgage. Is there a way he can release his name off the properties by declaring whats happened?

So your friend is a mortgage broker - he wouldnt be on the mortgage as you say the actual owners of the properties live there.....unless you mean your friend is on the mortgage as we - if that were the case then he is joint owners of all 3 too.

I am sure the solicitor(s) who dealt with these mortgages would of advised accordingly - unless they "helped" to get the mortgages as well.

So which is it?

kingstreet

What if he was a guarantor?

He'd be on the mortgage, not on the deeds and not live in any of them.

Problem?

OP - in answer to your question, they would need to take him off the mortgage if they could afford it, add someone else, or sell the property if they can't.

Yas1981

Thanks for your Replys,


My friend currently has 2 residential mortgages which she helped 2 families get mortgages on (in her own name). She made a stupid mistake and now those 2families still cant get a mortgage. She made a stupid mistake young and dumb. Now her 3rd property is her own for her to move into with her family but feels like the other 2 which she cant get rid of will cost her her home. She is too afraid to approach the bank and explain what has happened just in case she loses her home.



The houses were bought prior to the financial crisis and now not worth the money to resell and both fmailies dont earn enough to get the mortgages themselves. All she wants is to get rid of both of those properties. Is there anything she can do?

Lysimache

1. Is she the sole owner of those 2 properties, or do the other people have any joint legal ownership?
2. How much equity in the properties?

3. Are the other people able to continue to pay the mortgage (repayment mortgage, right?) going forwards for the foreseeable future?

Lysimache

Also, I wonder, if the other people are paying her the mortgage fee.... could that be considered rent from them? i.e. liable to tax?



Is she an unwitting landlord who makes no profit but has the legal obligations of a landlord? (I may be overthinking, cleverer people than me can chip in here)