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Tenants are parents

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Leonharris
Leonharris Posts: 1 Newbie
in House buying, renting & selling
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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  • elsien
    elsien Posts: 32,758 Forumite
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    https://www.onlinemortgageadvisor.co.uk/buy-to-let-mortgages/regulated-buy-to-let-mortgages/
    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.
  • G_M
    G_M Posts: 51,977 Forumite
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    As above - your choice of lender will be very restricted but it is possible. Find another broker!
  • lookstraightahead
    lookstraightahead Posts: 5,540 Forumite
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    Does your present mortgage company know your tenants are relatives of yours?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Overpay if you want to reduce the capital, no need to go repayment..
  • silvercar
    silvercar Posts: 46,967 Ambassador
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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.
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  • lookstraightahead
    lookstraightahead Posts: 5,540 Forumite
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    silvercar wrote: »
    Not their business unless it is in the mortgage terms & conditions that you can't let to family.

    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.
  • G_M
    G_M Posts: 51,977 Forumite
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    silvercar wrote: »
    Not their business unless it is in the mortgage terms & conditions that you can't let to family.
    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.
    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.


    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.
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