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Residential Mortgage but with Tenants


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I have been letting out a flat for the last two years but recently discovered that I have a Residential mortgage and not a BTL. I bought the flat through one of these developer schemes and basically signed where I had to. I never even thought about having to get permission to rent.

The Lenders have written to me asking many questions including asking for confirmation that I have lived there, which I haven't, and asked for the landlord's written consent to the tenancy

Please, has anyone been through this before.

Thanks for your help.

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Welcome Braths

The short answer to your problem is you should have a BTL mortgage and not a residential mortgage.

If you read the small print in your contract you will see you are in breach of your mortgage company terms and conditions.

Better come clean and plead mercy through ignorance.


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It's strange that a lender should do this after two years, how have they found out? My guess is your deal coming to the end of it's initial tie in period and they want you to move on. They can then lend that money again at say 6% instead of having you on a much lower tracker rate.

You should have a BTL mortgage and added to that it should also be noted on the building insurance (which you pay through the servicing charge) that the flat is let.

The lender would have the right to forclose the mortgage which is the worry but no one would win in that situation.

It may be worth contacting others that bought through the same scheme as you as they may have the same issues.

Hopefully, you have a AST and been doing tax returns, as this will support your case to the lender.

Ultimately you probably need to remortgage to another lender.



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