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Hip to be bear

Chat With The Brother In Law: A Reluctant Landlord...

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Having a chat with my Brother in Law at the weekend. When we arrived at their house to see the new baby, he was on the phone to a mortgage broker.............My ears were twitching under my HPC hat.

THey are looking to MEW for a new car. They have a second property on an IO mortgage which they rent out. He lived in it several years ago and has rented it out since. They had the opportunity to sell it in late 2007, but his wife convinced him not too without doing it up. Having spent a lot of time and money on the new kitchen and bathroom as the market turned, they couldn't sell for what they wanted and eventually rented it out again.

As he and his wife were discussing it I gleaned that the mortgage company does not know that it is being rented out. If they come clean on that they will lose the good mortgage deal that they have at the moment.

THe real meaty bit for me was what their C&G mortgage arranger had told them (presumably when they last remortgaged). His advice at the time was not to tell them that the property was rented if they wanted the best deal on offer. I have heard of liar loans where the mortgage broker slips one past the lender. This is the first time that I have heard of a UK high street lender's own employee slipping a cheeky one past his bosses.

Does anyone with greater knowledge of the mortgage market or banks have any light to shed on this????

Eric, any thoughts?

Shao Khan, this might be one for you...

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I read on a forum somewhere from a landlord that they were paying out the 3 quid to get the land registry details of the mortgage provider on competing places in their area and then informing the mortgage lender that it was being let. Her reasoning was that she didn't like being undercut by people with owner occupier mortgages.

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Having a chat with my Brother in Law at the weekend. When we arrived at their house to see the new baby, he was on the phone to a mortgage broker.............My ears were twitching under my HPC hat.

THey are looking to MEW for a new car. They have a second property on an IO mortgage which they rent out. He lived in it several years ago and has rented it out since. They had the opportunity to sell it in late 2007, but his wife convinced him not too without doing it up. Having spent a lot of time and money on the new kitchen and bathroom as the market turned, they couldn't sell for what they wanted and eventually rented it out again.

As he and his wife were discussing it I gleaned that the mortgage company does not know that it is being rented out. If they come clean on that they will lose the good mortgage deal that they have at the moment.

THe real meaty bit for me was what their C&G mortgage arranger had told them (presumably when they last remortgaged). His advice at the time was not to tell them that the property was rented if they wanted the best deal on offer. I have heard of liar loans where the mortgage broker slips one past the lender. This is the first time that I have heard of a UK high street lender's own employee slipping a cheeky one past his bosses.

Does anyone with greater knowledge of the mortgage market or banks have any light to shed on this????

Eric, any thoughts?

Shao Khan, this might be one for you...

I think its quite common for amateur landlords to use residential mortgages just like its quite common for them to "forget" to pay their taxes...

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I read on a forum somewhere from a landlord that they were paying out the 3 quid to get the land registry details of the mortgage provider on competing places in their area and then informing the mortgage lender that it was being let. Her reasoning was that she didn't like being undercut by people with owner occupier mortgages.

I like their style! :lol:

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I read on a forum somewhere from a landlord that they were paying out the 3 quid to get the land registry details of the mortgage provider on competing places in their area and then informing the mortgage lender that it was being let. Her reasoning was that she didn't like being undercut by people with owner occupier mortgages.

She should add the taxman to that list.

Most BTLers dont pay tax on this income as that type of mortgage hides the fact that its rented.

Edited by needle

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