koolkorsa
Member
Registered: 15th Jun 03
User status: Offline
|
I've seen a place I want to buy and rent out with the aim of selling it in a year or two. I've looked at mortgages and 'Buy to let' mortgages are much higher rates than a 'Normal' mortgage for your own property. Would I be alright just geting a normal mortgage and not telling the mortgage company that I was renting it out? I don't own any other properties by the way. Cheers.
|
jrsteeve
Member
Registered: 3rd Apr 02
Location: Manchester
User status: Offline
|
I'm quite sure you wouldnt be able to, although i'm not sure if there's a second home/holiday home option. A 'normal' mortgage is a residential mortgage, i.e. with the intention of you living there so the risk is slightly lower than buy to let hence the difference in rates. Shop around though as there are some better deals.
|
Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
|
Just get a normal one and have all mail regarding the mortgage sent to your office (where u live or work now)
I know a few people who do it
Adult GiftsClick here to vist us
|
J da Silva
Member
Registered: 10th Apr 03
Location: The FACTory
User status: Offline
|
Just don't let anyone find out.
|
a_j_mair
Member
Registered: 23rd Jan 04
Location: Scotland
User status: Offline
|
sshhh i do it 
|
Twiggy
Member
Registered: 15th Oct 04
User status: Offline
|
Our previous house was private mortgaged ..... that we were renting
[Edited on 18-05-2009 by Twiggy]
|
koolkorsa
Member
Registered: 15th Jun 03
User status: Offline
|
what's the consequences if the mortgage company found out? financial penalties?
|
Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
|
dont think so. Just plead ignorant, you lived there for x amount of months and couldn't afford it. So renting it till you can afford it
Adult GiftsClick here to vist us
|
jrsteeve
Member
Registered: 3rd Apr 02
Location: Manchester
User status: Offline
|
Ah sorry, misread your original post. I've done this myself on all i've bought in the past. My current mortgage is actually a buy to let and i'm living in the property!
As long as the mortgage is paid they've no reason to suspect a thing. Its a bit easier if you pay one of the bills yourself i.e. council tax, so you've some evidence of living there. The only risk you have is if the tenants stop paying rent as you've no come back or support from the bank. By law they can revoke the mortgage and essentially repossess the property, but as long as you're careful and fine decent tenants then just do it.
|
VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
User status: Offline
|
You can have one resi mortgage 
Corsa 2.0 16v Vegas - Sold
|
