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Tenants are parents
Leonharris
Posts: 1 Newbie
I have a house with my job so have invested in two buy to let properties over the years. One has a normal tenant with no problems. The other used to have regular tenant up until about five years ago when my parents in law moved in. I charge them a peppercorn rent in return for childcare. The mortgage is an interest only and I want to change it to repayment but my mortgage broker says that I can't change products because no lenders will lend to me as family members are my tenants. Is this true? Can anybody help? Leon
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Comments
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All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.0 -
As above - your choice of lender will be very restricted but it is possible. Find another broker!0
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Does your present mortgage company know your tenants are relatives of yours?0
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Overpay if you want to reduce the capital, no need to go repayment..0
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lookstraightahead wrote: »Does your present mortgage company know your tenants are relatives of yours?
Not their business unless it is in the mortgage terms & conditions that you can't let to family.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
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Not their business unless it is in the mortgage terms & conditions that you can't let to family.
As already pointed out, most lenders prohibit letting to family in their T&Cs, so it is likely that the current lender's T&Cs prohibit it. But not certain.Isn't it often in buy to let mortgages that you can't rent to family - I thought it was quite 'usual' that you can't.
However if the OP obtained a BTL mortgage and installed an unrelated tenant, and later let to a family member, it is quite feasible that he is breaching his mortgage terms wothout the lender being aware of the fact. Yet.0
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