Residential mortgage on second home - consequences of discovery after property sold?

Yellow_mango

For a number of years we owned a property which we used as a second / holiday home. Our main residence was job-related accommodation. At the time of original purchase the mortgage advisor told us that as it was our first and only property purchase, we were able to apply for a FTB residential mortgage, so we did. At some point we remortgaged to a different lender, also as a standard residential mortgage.

The property was always insured adequately, council tax paid correctly (as a second home) and mortgage always paid on time (actually we overpaid for a period). Mortgage statements always went to the property. Occupancy was never discussed with the lender.

A couple of years ago our circumstances changed and we sold the property. The mortgage was settled in full, and the disposal declared to HMRC.

Jump to today, and I apply for a current account with the former mortgage lender. The account was opened no problems, but shortly afterwards I get an email saying they have identified me as an existing customer and asking me to fill out a form giving details of address changes.

The mortgage is the only account I can think of that I have ever had with this bank.

Now I’m not sure how to complete the form. If I include details of the mortgage and the address thereof, is there a risk they will pick up that this address is not on my 3 year address history and challenge the status of the mortgage? Given the account has been fully settled, would there actually be any consequences of this if they did pick up on it? Or do I just complete the form confirming current address details and making no mention of the mortgage or other address (as I am not an existing customer).

Am I being completely paranoid here?

[Deleted User]

Plenty lenders allow a residential mortgage on a BTL property if the applicant lives in tied work accommodation. Nothing to be concerned about, they are just trying to bring your customer record up to date as they have obligation under data protection to hold accurate and up to date information Fill it in showing your correct address history and all will be fine

Yellow_mango

Plenty lenders allow a residential mortgage on a BTL property if the applicant lives in tied work accommodation. Nothing to be concerned about, they are just trying to bring your customer record up to date as they have obligation under data protection to hold accurate and up to date information Fill it in showing your correct address history and all will be fine

Thanks! So if I put the mortgage address as my previous address, and my current address as new address (obviously!) that should keep them happy?

I guess it would probably be a jump for them to check the dates the property was sold against my address history anyway. There are no dates on this form, and it only has space for one previous address (I’ve had many previous addresses over the last few years - 3 in the last 3 years that went on the application form). So if I don’t put the mortgage address, I’ve no idea which of my other many addresses they’d want!

[Deleted User]

Yellow_mango wrote: »

Thanks! So if I put the mortgage address as my previous address, and my current address as new address (obviously!) that should keep them happy?

I guess it would probably be a jump for them to check the dates the property was sold against my address history anyway. There are no dates on this form, and it only has space for one previous address (I’ve had many previous addresses over the last few years - 3 in the last 3 years that went on the application form). So if I don’t put the mortgage address, I’ve no idea which of my other many addresses they’d want!

They just want the addresses you have lived at in the last 3 years. They dont care what you are doing and how mortgage terms and conditions are set. That isnt their area. They are just trying to get accurate information for your record.

So if they are asking for where you have been living in the last 3 years, give them all the addresses you have lived at in the last 3 years. If that doesnt include the mortgage address then it doesnt include the mortgage address. Dont fudge the facts to try present it in a certain way. They just want the accurate information. If there is space, put the mortgage address somewhere and state that you may have an account registered at this address but you havent lived there within the last 3 years

Yellow_mango

Thank you. It only asks for previous addresses if you have “recently changed your address and not notified us”. Which doesn’t seem to apply here. Otherwise it’s just a confirmation of current address.

So I have filled it in as a confirmation of my current address, but included a little note mentioning the other address and that I hadn’t lived there in the last 3 years. They probably won’t even read it, but I feel slightly better having put it somewhere!

Fingers crossed!

amnblog

Your original post suggests joined up thinking by the Bank, not a specialty in that sector. You have nothing to worry about.