Live in buy-to-let property: Is there any loophole?

maxkpp

Hi All

Is there any one live in a buy-to-let property nowadays? Is it something against the law or is there any loop hole that can be exploited..

silvercar

Do you mean get a BTL mortgage and then decide to live in the property yourself or move back into a property that you have previously let out?

pickles110564

maxkpp wrote: »

Hi All

Is there any one live in a buy-to-let property nowadays? Is it something against the law or is there any loop hole that can be exploited..

Why would you take out a BTL mortgage which cost more than a normal one?
This has got to be a wind up.

silvercar

pickles110564 wrote: »

Why would you take out a BTL mortgage which cost more than a normal one?

You can get a mortgage based on the potential rental value of the property rather than your income.

maxkpp

silvercar
Yes, thats what i meant, get a BTL mortgage to buy a prop, and live in it instead of let it out

Old_No.7

(Ah, just read answer by OP, so you can ignore my message!)
Hi there, a friend of mine was in a similar situation: she changed her mortgage on the flat where she'd lived to a BTL mortgage as she was moving abroad. But she then decided to come back after a few months. So she was then tied in for 2 years into that BTL mortgage, which would have been expensive to break due to penalties. Not sure what she ended up doing: I think she sold the place (paying the early redemption charge anyway) as she needed the money. (sorry, this is not very helpful to OP, but just wanted to say it does happen).

silvercar

maxkpp wrote: »

silvercar
Yes, thats what i meant, get a BTL mortgage to buy a prop, and live in it instead of let it out

That would be fraud, obtaining money by deception. If you want to buy a property to live in then you need a residential mortgage, the terms of a BTL mortgage would not allow you to live in it. This is because the amount loaned is based on the likely rental income, if you live in the property you won't have the income and so the lender would have judged you can afford it on a false information. If you want to buy a property to live in, why not just get a residential mortgage, if your income isn't sufficient maybe you need to rethink your plans.

silvercar

Old_No.7 wrote: »

(Ah, just read answer by OP, so you can ignore my message!)
Hi there, a friend of mine was in a similar situation: she changed her mortgage on the flat where she'd lived to a BTL mortgage as she was moving abroad. But she then decided to come back after a few months. So she was then tied in for 2 years into that BTL mortgage, which would have been expensive to break due to penalties. Not sure what she ended up doing: I think she sold the place (paying the early redemption charge anyway) as she needed the money. (sorry, this is not very helpful to OP, but just wanted to say it does happen).

Not quite the same as the mortgage application (and the loaning of the money) was genuine. Moving in to a property that has been let out due to a reason that can be proved, is a different matter. Probably a breach of mortgage conditions, but not a fraudulent matter.