[Finance] Buy to Let Mortgages

[pearl]

I am happy to assist but people are of course free to ask the advice of anyone in the field

(really sorry)

 

[Bold Seagull]

Er, what? What is this opinion based on? I've never had any contact from any mortgage provider about where any money has gone once the money has been received. Once you have a mortgage and are paying it on time, that's it. They don't send PIs round to check on you.

Tom Selleck did come round mine as it happens.

Happy to also endorse [MENTION=3887]Uncle Spielberg[/MENTION] and wish him luck on his new venture.

 

[mikeyjh]

yep! They didn't tell the lender. They found out because of an insurance claim ... I think, but it got a bit messy

Well, I think the important question is not 'how would they find out?', more what happens if they do - It's basically fraud right?

 

[Uncle Spielberg]

Hi all.

Looking to get a buy to let mortgage for a flat.Wondering if there are any experts here who can advise
on the best deals?
I could get a further advance on a Nationwide Mortgage at a low rate however you can't use it to buy a property
to let (would they know?)

Buy to let rates are high after the first 2 years so is it easy enough to re-mortgage after 2 years
and continue with the low rates or will I be stuck with the higher rates?

Many thanks

Most lenders are ok with this. After the 2 years, most buy to lets are over 2 years rates as most landlords do not want to tie in with penalties for say 5 years as they like the flexibility of being able to sell an asset and not be tied in for a 5 year penalty period. The main issue with buy to lets is the rental income needed to cover stress tests especially in london and the south east

 

[Uncle Spielberg]

Well, I think the important question is not 'how would they find out?', more what happens if they do - It's basically fraud right?

It is imperitive to be upfront with the lender

 

[Uncle Spielberg]

No they won't.

You have to declare rental income profit to the hmrc

 

[LlcoolJ]

You have to declare rental income profit to the hmrc

Yes, that's not what I said or what I was replying to though. I have never seen them ask for details from a lender.

 

[Uncle Spielberg]

Nationwide have an issue with raising money to buy a second property. Nat West and Santander are a good alternative

 

[Uncle C]

You have to declare rental income profit to the hmrc

Anyone living in a rented property, and who is unclear if their landlord is declaring income, should inform HMRC.

 

[Triggaaar]

You have to declare rental income profit to the hmrc

Obviously. That doesn't mean they'll want to see all the details of the mortgage.

 

[Triggaaar]

Anyone living in a rented property, and who is unclear if their landlord is declaring income, should inform HMRC.

Don't be daft. No one can really know if the landlord is declaring the income, so you're saying everyone in rented property should inform HMRC. They wouldn't have the manpower to deal with all the letters.

 

[Triggaaar]

It is imperitive to be upfront with the lender

Nationwide have an issue with raising money to buy a second property.

That's why it's imperative that you lie to them.



This of course my professional opinion, but cannot be considered as advice to others, and I have not charged for the opinion.

 

[Uncle C]

Don't be daft. No one can really know if the landlord is declaring the income, so you're saying everyone in rented property should inform HMRC. They wouldn't have the manpower to deal with all the letters.

You'd be surprised how many landlords feel compelled to boast about having one over on HMRC.

 

[Triggaaar]

You'd be surprised how many landlords feel compelled to boast about having one over on HMRC.

Well feel free to dob those scumbags in.

 

[Uncle C]

Well feel free to dob those scumbags in.

The extra income to HMRC might pay for another hospital or two.

 

[Notters]

Stop me if I'm wrong here but surely by taking out a non buy to let mortgage in order to afford to buy a property that one couldn't otherwise afford, wouldn't one potentially be forcing up house prices artificially depriving a household of a home that they would otherwise be able to afford and condemning them to a life of rental?

 

[Uncle Spielberg]

Stop me if I'm wrong here but surely by taking out a non buy to let mortgage in order to afford to buy a property that one couldn't otherwise afford, wouldn't one potentially be forcing up house prices artificially depriving a household of a home that they would otherwise be able to afford and condemning them to a life of rental?

Yes that is why the tories have imposed massive handbreaks on the market the last year, the idea was to give first time buyers a better chance but that has not really panned out in hindsight

 

[Bold Seagull]

Stop me if I'm wrong here but surely by taking out a non buy to let mortgage in order to afford to buy a property that one couldn't otherwise afford, wouldn't one potentially be forcing up house prices artificially depriving a household of a home that they would otherwise be able to afford and condemning them to a life of rental?

I think it is called capitalism.

 

[looney]

Stop me if I'm wrong here but surely by taking out a non buy to let mortgage in order to afford to buy a property that one couldn't otherwise afford, wouldn't one potentially be forcing up house prices artificially depriving a household of a home that they would otherwise be able to afford and condemning them to a life of rental?

Parasite Capitalism where a beggar my neighbour system replaces endeavour on an over crowded Island. I myself would put a massive tax on second homes and use the dosh to start deporting undesirables. In the age where middlemen are being squeezed out by new technology I dont want to create a new class of people geared to screwing over other people based entirely on their credit rating.

 

[beorhthelm]

Parasite Capitalism where a beggar my neighbour system replaces endeavour on an over crowded Island. I myself would put a massive tax on second homes and use the dosh to start deporting undesirables. In the age where middlemen are being squeezed out by new technology I dont want to create a new class of people geared to screwing over other people based entirely on their credit rating.

they do, CGT applies on sale and income tax on rents. if you mean you want to apply punitative taxes, what happens to the rent market? or we could just build more house to address the core problem.