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Accidental Landlords To Be Clobbered By Mortgage Hike

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Home-owners who let out their properties for more than three years and who have ordinary residential mortgages face steep hikes in their repayments.

Nationwide will be adding 1.5% to borrowers’ monthly payments, plus a £50 fee when they notify the lender that they are renting out their property.

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Home-owners who let out their properties for more than three years and who have ordinary residential mortgages face steep hikes in their repayments.

Nationwide will be adding 1.5% to borrowers’ monthly payments, plus a £50 fee when they notify the lender that they are renting out their property.

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Ooh, now let me think what will (continue to) happen!

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Home-owners who let out their properties for more than three years and who have ordinary residential mortgages face steep hikes in their repayments.

Nationwide will be adding 1.5% to borrowers’ monthly payments, plus a £50 fee when they notify the lender that they are renting out their property.

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Good find buytoilet.

1.5% increase is a fair increase in one go.

I wonder if Nationwide will be trawling estate/letting agents records to try and find out who these accidental landlords are?

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Wasn't a similar ite posted yesterday?

Isn;t the bit missing the sting in the tail if you let but don;t tell that you are doing so, something like unlimited increase in interest rates or somesuch?

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Easy, just don't tell the lender. :P

And don't tell HMRC either. ;)

Fraud and Tax Evasion - nice.

Not that there's plenty who aren't at it ... as the govt gets more desperate for revenue they are bound to turn their sights on the 'secret landlords'. They'll probably offer an amnesty to get people into the net and then go to town on anyone they catch, after that.

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Easy, just don't tell the lender. :P

That's exactly what is likely to happen, and it'll be tenants who suffer (in the short term, at least).

We're already starting to see an increase in 'forced landlords' - people who need to move but can't sell, so they rent out the home they own while renting one to live in somewhere else.

I think there's a case for going a bit easier on people who own only one home and rent it out, as distinct from BTL-ers (i.e. people who also own the home they live in). These people are not trying to own more than one place in total; BTL-ers are.

We already have a situation in which BTL-ers who dishonestly let their homes out on an OO mortgage are condemning their tenants to the insecurity of being repo-ed at any moment. Unless there is an effective enforcement mechanism put in place (e.g. letting agents being required to verify that properties are not being rented out on an OO mortgage), involuntary LLs are going to do the same thing and the problem will get worse.

I fully support a clampdown on unscrupulous LLs, but it has to be done in a way that doesn't punish their tenants.

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That's exactly what is likely to happen, and it'll be tenants who suffer (in the short term, at least).

We're already starting to see an increase in 'forced landlords' - people who need to move but can't sell, so they rent out the home they own while renting one to live in somewhere else.

I think there's a case for going a bit easier on people who own only one home and rent it out, as distinct from BTL-ers (i.e. people who also own the home they live in). These people are not trying to own more than one place in total; BTL-ers are.

We already have a situation in which BTL-ers who dishonestly let their homes out on an OO mortgage are condemning their tenants to the insecurity of being repo-ed at any moment. Unless there is an effective enforcement mechanism put in place (e.g. letting agents being required to verify that properties are not being rented out on an OO mortgage), involuntary LLs are going to do the same thing and the problem will get worse.

I fully support a clampdown on unscrupulous LLs, but it has to be done in a way that doesn't punish their tenants.

As far as I can see, there are a lot of people out there with residential mortgages who are in fact letting their properties without letting on to either the lender or IR as it is - so difficult to see that it's going to have much effect off the bat.

I'd guess this will go hand in glove with the IR taking a tougher line. That should sweep a lot more people into the system giving Nationwide the chance to cash in.

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This was reported here yesterday.

Nationwide had some figures on their site.

Your average property-porn victim who having paid off their own mortgage bought a BTL for £200k using an interest only Owner-Occupier mortgage (liar loan) would see their repayments increasing by £250 a month. :ph34r:

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This was reported here yesterday.

Nationwide had some figures on their site.

Your average property-porn victim who having paid off their own mortgage bought a BTL for £200k using an interest only Owner-Occupier mortgage (liar loan) would see their repayments increasing by £250 a month. :ph34r:

Well it may or may not be a rumour that some banks have been compiling a "who has a residential mortgage and doesnt live there" list for approximately a year now.. but ;)

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We're already starting to see an increase in 'forced landlords' - people who need to move but can't sell, so they rent out the home they own while renting one to live in somewhere else.

If they reduced the price, they'd be able to sell.

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If they reduced the price, they'd be able to sell.

But you can't sell for less that the 'valuation'.

I know two people trying to sell just now, one has turned down an offer that was just £3000 under the asking price (of ~£250000) as she did not see why she should not get as much as (if not more) than the valuation.

Prices cannot fall apparently, I have it on good authority.

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If they reduced the price, they'd be able to sell.

exactly....

I have heard many saying they can't sell, yet they will not comtemplate reducing the asking price, even if it would still mean them asking more than they paid for it.

Many seem to think if an agent values it at a certain price, then that is what it is worth, and nothing less is what they deserve for it. :rolleyes:

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That's exactly what is likely to happen, and it'll be tenants who suffer (in the short term, at least).

We're already starting to see an increase in 'forced landlords' - people who need to move but can't sell, so they rent out the home they own while renting one to live in somewhere else.

I think there's a case for going a bit easier on people who own only one home and rent it out, as distinct from BTL-ers (i.e. people who also own the home they live in). These people are not trying to own more than one place in total; BTL-ers are.

We already have a situation in which BTL-ers who dishonestly let their homes out on an OO mortgage are condemning their tenants to the insecurity of being repo-ed at any moment. Unless there is an effective enforcement mechanism put in place (e.g. letting agents being required to verify that properties are not being rented out on an OO mortgage), involuntary LLs are going to do the same thing and the problem will get worse.

I fully support a clampdown on unscrupulous LLs, but it has to be done in a way that doesn't punish their tenants.

Sorry don’t subscribe to that – can’t sell your home, drop the price and try again.

Regardless of being accidental or not, they are scamming EVERYONE by not declaring their tax and keeping the whole insanity bubble popped up through renting from their fellow ‘homeowner’, who in turn the cycle starts again.

They should all get burnt other than the one’s that declare it as a business and who were perhaps clever enough to get in (and out) at the right time (pre 2002, maybe 2000 even).

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The only time it should get sticky is when the outstanding mortgage + estate agents fees + solicitors fees +early redemption fees (if any) come to more than or equal to the sale price. Anything that leaves the vendor in positive equity, taking all those into account, becomes the base figure.

If someone is rejecting an offer based on the estate agent's valuation, where the offer would still leave the vendor in positive equity, then they can't be all that desperate to sell, I would've thought :huh:

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exactly....

I have heard many saying they can't sell, yet they will not comtemplate reducing the asking price, even if it would still mean them asking more than they paid for it.

Many seem to think if an agent values it at a certain price, then that is what it is worth, and nothing less is what they deserve for it. :rolleyes:

Oh, well, if they refuse to sell and rent out the property without telling the lender or the taxman, and A N Other dobs them in, they will get what they deserve.

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the DPS (deposit protection service) should be able to provide a relatively accurate depiction of addresses being rented out. Matching that database against the mortgage companies database would throw up some very interesting figures I suspect.

Also - since the government have access to that data - would it not be prudent to find out who's been dodging the rental income tax ASIDE from the obvious mortgage fraud?

In times when more cash is need for HMRC it seems a very obvious door to instant funds. Nothing like the threat of prison for mortgage fraud to make you get your cheque book out - and hey - a quick re-mortgage and the tax bill is paid and there's enough left over for a new flat in battersea.

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In times when more cash is need for HMRC it seems a very obvious door to instant funds. Nothing like the threat of prison for mortgage fraud to make you get your cheque book out - and hey - a quick re-mortgage and the tax bill is paid and there's enough left over for a new flat in battersea.

In fact, why doesnt the taxpayer pay these peoples tax for them.

They are providing a valuable service and if they werent committing fraud then house prices would go down and their tenants would be homeless as none of them want to buy a house.

Next BTL i meet, ill get their name and recommend them for a medal...

Edited by Rozza

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It wouldn't surprise me if the majority of accidental LLs were either making a small loss or breaking even with respect to rental income against mortgage interest, so not liable to pay any tax anyway. I would expect that the IR has bigger fish to go after.

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Good find buytoilet.

1.5% increase is a fair increase in one go.

I wonder if Nationwide will be trawling estate/letting agents records to try and find out who these accidental landlords are?

insurance firms are all linked.

when the applicant went for the second mortgage, the lender will have checked the credit agency.

easy peasy japanesy...they already have the database.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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