alibongo Posted August 24, 2006 Report Share Posted August 24, 2006 My husband and I bought and let out a house at the start of April. It is our only property, as we live in married quarters on an Army camp. The mortgage is residential rather than buy to let, as we had been advised this was allowed for serving personnel who could consider such a property to be their main residence. Having read various forums and web sites, I am now wondering whether we will get in trouble for having a residential mortgage in a rented out property, when it comes to submit a self assessment form? We do have the correct landlord insurances. Have we been a bit naughty, or if we fill in the self-assessment form correctly, will this all be fine? Thanks Link to comment Share on other sites More sharing options...
GPEL Posted August 24, 2006 Report Share Posted August 24, 2006 2 separate issues issues here. You may have been advised xy&z but were they qualified to do so - your main residence is probably a married quarter, though some mortgage providers may have an Armed Forces-deal that offers residential mortgage rates for BTL properties. Do a tentative check with your mortgage company to ascertain their postion on it. Be careful, theoretically, not complying with the lending conditions could invalidate your mortgage, with the lender recalling the loan. As far as I know, the Inland Revenue is only concerned with income and expense, not who provides the mortgage or the conditions for that loan. Link to comment Share on other sites More sharing options...
Chris@Leaseguard Posted August 24, 2006 Report Share Posted August 24, 2006 If you are renting out the property and you haven't informed your Building's Insurer, then it is most likely that the cover is not vaild. I would contact your insurer now. They may accept that the property is tenanted although may impose some restrictions and / or increase the premium, or even move you onto their Landlord's policy. If they won't accept that the property is rented out, then you need to move to specialist Landlords policy. You can obtain an premium indication for this from our website. www.leaseguard.co.uk Link to comment Share on other sites More sharing options...
alibongo Posted August 24, 2006 Author Report Share Posted August 24, 2006 I have the correct landlords buildings insurance. My insurer is fully aware of the letting situation. It's just the mortgage lender situation that I'm querying (although I do realise one can impact on the other). Link to comment Share on other sites More sharing options...
plym77 Posted August 25, 2006 Report Share Posted August 25, 2006 Self Assessment does not report on the type of mortgage you have. It is for the purposes of reporting income and expenses and reporting disposals etc. The Inland Revenue have no interest as to whether a mortgage is residential or buy to let. Regards Sherena Link to comment Share on other sites More sharing options...
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